Fiat and General Motors engine and car parts assembly joint venture Powertrain will lay off 706 workers at four Italian factories, a company source told Reuters.

The report said the company, which makes transmission systems and diesel engines, agreed the job cuts plan with three of four main trade unions, but it was not clear when the layoffs would begin.

Reuters noted that Powertrain sent home temporarily 700 workers at two factories, near Milan and in Turin from October because it was winding up production of two types of engines after demand fell.

Powertrain employs about 22,000 people in eight European and South American countries, including 8,000 people in Italy, the report added.