Dongfeng Peugeot Citroen to axe 1,000 jobs

Shanghai, October 30 (Gasgoo.com) PSA Dongfeng Peugeot Citroen Automobile Co, a joint venture between Dongfeng Motor Corp and PSA Peugeot Citroen, plans to lay off more than 1,000 employees starting next month, Shanghai-based Oriental Morning Post reported, citing company sources.

Around 1,000 workers are facing the axe due to output cuts caused by the mounting inventory of vehicles as the market demand is sliding, the source said. Workers would be paid a subsistence wage temporarily but are unsure how long the “paid leave” will last.

In September the joint venture automaker sold a total of 16,000 vehicles in the Chinese market, down 3% from one year earlier.

Globally, PSA Peugeot Citroen announced to cut production by at least 20 percent, and has slashed its operating margin forecasts from 3.5 to 1.3 percent.

Christian Streiff, chief executive of PSA Peugeot Citroen, told reporters that at the time the company would also temporarily halt some of its production in Brazil.