French car maker Renault said it would cut a shift at its factory in Palencia, northern Spain, meaning 400 temporary workers would be laid off.
“The constant fall in the European market and Renault's management policy of rigorously monitoring stock makes it necessary to adapt the pace of manufacturing,” a spokesman for Renault in Spain said.
The factory in Palencia currently has a total of 3,300 workers and makes various versions of Renault's Megane car.
Eighty percent of production is sold to European markets outside Spain.
Renault has already announced temporary lay-offs for about 10,000 workers at its four factories in Spain. Under Spanish law, the company is sending workers home for between 24 and 50 days. They will receive part of their salaries from the state. (Reuters)