PSA Peugeot Citroen is planning to cut around 300 jobs as it reduces output at its Sochaux plant in eastern France starting in November, according to French trade union officials.

Reports say the cuts were announced to labour representatives at a works council meeting.

Reuters suggest the headcount reduction will take effect on a Sochaux assembly line producing two Peugeot models and the DS5.

Under CEO Carlos Tavares' plans, PSA is planning to rationalise its model offerings and reduce excess manufacturing capacity. However, any moves to further reduce capacity in France are sure to be controversial.

The Sochaux plant's biggest selling model, the Peugeot 3008, is not due for a replacement until 2016.

"That's what concerns us," said Guy Misere, an official with the centre-left CFDT union speaking to Reuters. "From here until 2016 it can only get worse."

The job cuts, which amount to half a shift at the plant, will reduce the assembly line's daily output to 489 vehicles from 649, the unions told Reuters.

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