Peugeot-Citroen to axe more jobs

French car giant Peugeot-Citroen has announced that it is to axe another 11,000 jobs this year as the financial climate continues to take its toll on the motor industry.

The company said that in 2008 it lost 343 million euros (£306 million), while the previous year it had a net profit of 885 million euros (£797 million).

With Peugeot-Citroen expecting to make another loss this year the company is making drastic workforce cuts.

Since the start of a turnaround plan two years ago 18,000 jobs have already been lost, accounting for around 10% of its workforce.

The company said that France will see the most job losses with around 6,000 to 7,000 voluntary redundancies.

Last year saw the worst decline in European car sales since 1993 with a fall of 7.8%.

Production is expected fall between 20% and 30% this year as sales drop.

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