PSA may end up eliminating 10 percent of its workforce in France, or 10,000 jobs, all positions classified as temporary, French daily La Tribune said, without citing a specific source.

According to French daily Les Echos, initial cuts will target the Aulnay-Sous-Bois and Melun-Senart plants in the Paris region.

A spokesman for the French carmaker, which held an extraordinary workers committee meeting on Thursday, said it was "premature" to confirm plans to cut 10 percent of the workforce.

The group had identified 980 jobs that could eventually be eliminated, he said, adding that cuts at the Aulnay plan were discussed at Thursday's meeting but that the situation of the Melun plant was not discussed.

Chief Executive Philippe Varin said at the Frankfurt auto show last week that the group planned to cut costs and jobs as it braces for tougher economic conditions.

He had said PSA could trim the workforce without having to sack workers and that he expected a 1 percent drop in the European car market this year.

Copyright Reuters, 2011