PSA Peugeot Citroën now says that 3,500 jobs could be axed in Europe during 2012 as part of plans to reduce costs by EUR800m. Media reports earlier on Wednesday had suggested 5,000 jobs would go.

It issued a statement after executive management convened a special meeting of the European Works Council on Wednesday to present the “improvement plans aimed at restoring the automotive division’s competitiveness and profitability”.

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PSA plans to streamline the group’s organisational structures or to adjust project budgets, particularly in sales, marketing, information technology and research and development and will also “leverage the benefits of the relationships forged with its strategic suppliers”.

“These organisational measures could result in the reduction of 2,500 jobs in Europe in 2012,” PSA said.

“The group will deploy support programmes in each country, in line with the retraining, transfer and outplacement provisions of the human resources planning and development agreement signed with employee representatives in March 2010.

“In particular, internal posts lost through natural attrition will not be replaced and the group will terminate outsourcing contracts with external companies, whose positions could be in part filled by group employees.

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“In the manufacturing operations, the productivity and organisational measures will result in the reduction of an estimated 1,000 jobs in 2012.”

Preliminary studies will be conducted for a plan to restructure the scooter manufacturing base, PSA said.

In each country, employee representative bodies will be informed and consulted about the proposed measures.

Earlier report: PSA cost cuts could take 5,000 jobs

Q3 results: Auto division struggles