PSA Peugeot Citroen has announced plans to shed 2,700 jobs globally because of falling demand in Europe.
The move follows predictions that its sales volumes will fall by at least 10% next year, following a 17% drop in the last quarter of this year.
The company said the job cuts would affect assembly-line workers, managers and office staff.
The carmaker also plans to move 900 workers from its French factory in Rennes to other sites.
Peugeot Citroen human resources director Jean-Luc Vergne said urgent action was needed in order to protect the future of its total 200,000 employees.
The group's sales fell 5.2% in the third quarter.