PSA to Slash More Jobs

A slumping European market and negative outlook on 2009 is forcing France’s PSA Peugeot Citroen to slash more jobs in order to cut production and keep a lid on inventories.

PSA says it will trim 2,700 jobs across France, about 2.4% of its workforce there.

The cuts come as PSA forecasts a 17% drop in European sales for the final quarter and a 10% decline in 2009.

The auto maker is expected to present its plan for cutting staff to its works council Dec. 2. PSA reportedly has eliminated 7,400 jobs through voluntary separation deals since 2007.

Earlier, France’s other auto maker, Renault SA, predicted industry sales in Europe next year could decline as much as 20%.