PSA Peugeot Citroen has announced plans to cut 3,550 jobs reflecting lower demand for its products.

The job cuts could affect assembly line workers, managers and office staff in all of the firm's plants under the plan that provides for voluntary departures, a statement from the car company said.

Initially, the firm had announced 2,700 job losses, but later announced that it would seek to trim a further 850 from the headcount at its plant in the western town of Rennes through voluntary redundancy.

Renault has also announced that it would cut 6,000 jobs in Europe, including 4,900 in France.