Peugeot-Citroen to cut 11,000 jobs

France’s biggest car maker Peugeot-Citroen said today it will cut another 11,000 jobs this year.

The company announced a loss of €343m in 2008 compared with a net profit of €885m a year earlier and said it expects to make another loss this year.

Chief Financial Officer Isabel Marey-Semper said this year’s job cuts follow the loss of 18,000 – about 10 percent of the work force – since the start of a turnaround plan two years ago.

France will take the brunt of the cuts, with around 6,000-7,000 voluntary redundancies, the company said.

European car sales fell 7.8% last year – the worst decline since 1993.

Ms Marey-Semper said she expected a reduction in production between 20 and 30% this year as auto sales fall and the group continues to cut inventories.