PARIS (Bloomberg) -- PSA/Peugeot-Citroen is proposing an early-retirement plan for French workers to trim costs and return to profit.
PSA has offered paid leave for as long as 18 months for workers retiring early, Christian Lafaye, the leader of FO union at the automaker, said today.
PSA has started to implement a restructuring plan that includes closing its Aulnay factory on the outskirts of Paris and eliminating 11,200 positions in France.
The company employed 204,287 people at the end of last year, with 46 percent based in France. About 27 percent of PSA's automotive workers are at least 50 years old, according to company data.
France accounted for 40 percent of PSA production last year.
PSA started talks with French unions on May 29 to reach a "social contract" with workers that would help the company increase productivity at its plants.
The company reported a 576 million-euro ($761 million) operating loss last year.