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Peugeot to cut 250 more jobs at UK Vauxhall plant

Reuters  |  LONDON 

(Reuters) - Around 250 more will be lost at Peugeot-maker PSA's Port plant in northern on top of around 400 cuts announced last year, to reduce the plant's output to one shift, the firm said on Monday.

acquired British brand last year when it bought General Motors' loss-making European arm, raising fears among unions and lawmakers of job losses and possible plant closures as part of cost-cutting plans.

In October, said it would cut about a quarter of its workforce at the site by the end of 2017 to improve the production facility's competitiveness.

A said on Monday that the company told representatives of trade union at a meeting last week that it now needed to go further.

"The company explained that although the initial voluntary separation programme at its Port plant announced in October... has been successful, it needs to initiate a further voluntary programme for eligible employees of a further 250," the firm said in a statement.

"The teams are conscious of the need to accelerate the recovery of plant productivity in order to meet the challenges ahead," it said.

The firm will move to a single production shift in April.

Vauxhall, the British arm of the brand sold on the rest of the continent, builds the model at the site and is due to decide on whether to renew production this year, seen as a key test of Britain's ability to attract investment as it leaves the

(Reporting by Costas Pitas; editing by and Alistair Smout)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 08 2018. 20:43 IST