French carmaker Peugeot Citroen has set out plans to cut 8,000 jobs and close an assembly plant outside Paris as losses mount, reports the BBC.
Peugeot said the Aulnay plant near Paris, which employs 3,000 workers, would stop production in 2014.
Last week, Peugeot said its first-half sales had fallen 13% amid a "profound crisis" in its eurozone markets.
Another plant, at Rennes in western France, is set to shed 1,400 posts from the 5,600 it employs there.
Another 3,600 jobs would be lost across all facilities in France.
Peugeot's chairman, Phillipe Varin, said the situation was grave.
"I am fully aware of the seriousness of today's announcement, as well as of the shock and emotions they will arouse in the company," he said in a statement.
He said "the depth and persistence of the crisis" made the reorganisation necessary and that workers who lost their jobs would receive support and help in finding new employment.
Around half of those currently employed at Aulnay would be offered new jobs at Peugeot's other Paris plant at Poissy.
Unions described the announcement as a "declaration of war" and an "earthquake", the AFP press agency reported.