French President François Hollande has had to change his stance against French automaker PSA Peugeot Citroen’s plans to close a factory and eliminate jobs.

French Industry Minister Arnaud Montebourg said in a meeting with officials from Peugeot’s labor union that the carmaker’s massive layoff plan is inevitable.

The ministry also said in a report that the shutdown of a Peugeot factory is also inevitable, noting the moribund car market and the automaker’s overcapacity.

In July, the French president stated his strong opposition to the carmaker’s plan to lay off eight-thousand employees and shut down a factory near Paris.