PARIS -- PSA Group plans to cut more than 2,000 jobs, around 3 percent of its workforce, in France next year amid uncertainty over the effects of Brexit and falling diesel sales, a French radio station said.
The reductions would be made through early retirements and voluntary buyouts, France Info radio reported today, citing internal documents.
PSA's management said in the documents that uncertainty over the UK's vote to quit the EU and falling sales of diesel vehicles mean that the automaker must be "cautious," according to France Info.
PSA plans to cut 2,133 jobs in France, the radio station said. PSA's headcount, including jobs at its car parts supplier Faurecia, stood at 78,274 in France overall at the end of 2015, its annual report said.
PSA has cut 17,000 jobs since early 2013, France Info said.
"PSA prepares a fourth job-cutting plan. It's a true scandal," Jean-Pierre Mercier, a member of the CGT labor union at PSA told RTL radio today.
PSA was not immediately available for comment.
PSA was the first automaker to react to the collapse of the pound following the country's Brexit vote by increasing new-car prices in the UK.
PSA has heavily invested in diesel technology, along with other European automakers. The rising cost of building diesel cars to meet tougher emissions regulations is expected to hit diesel sales, with Renault warning that diesel engines could disappear from most of its European cars.
Since emerging in 2014 from a brush with bankruptcy and a government-backed bailout, PSA has pledged to cut labor costs, inventory and model line-ups to restore profitability.
France holds a 14 percent stake in the carmaker, along with China's Dongfeng Motor.