French finance minister moves to reduce Peugeot layoffs

The struggling automaker announced it would cut 8,000 jobs last week in an effort to cut costs by almost $2 billion.

July 16, 2012   by The Canadian Press

PARIS: Finance Minister Pierre Moscovici says a plan from French carmaker PSA Peugeot-Citroen to eliminate thousands of jobs goes too far and the number of job cuts must be reduced.

The struggling auto company announced plans last week to eliminate 8,000 jobs and close a major factory. President Francois Hollande has already said the current plan is unacceptable and must be renegotiated.

Moscovici refused to get into the details of what the government would be asking for, but said Sunday that the state has “levers” it can deploy in negotiations. He said the government’s goal would be to reduce the number of jobs eliminated.

The layoffs and plant closure are part of an effort to cut the automaker’s operating costs by almost $2 billion a year.

©The Canadian Press