Russia’s largest car manufacturer Avtovaz is forced to make cuts
24 September 2009

Russia’s largest car manufacturer Avtovaz has announced it will cut 27,600 jobs to cope with the drop in demand for its cars.

Avtovaz, which makes Lada cars, employs 102,000 people and had considered cutting 36,000 jobs before deciding on the lower figure.

In a statement, Avtovaz said: "Today, 102,000 people work at Avtovaz. Such a number cannot guarantee effective and profitable production; therefore we have agreed to reduce the personnel by 27,600 people."

The job cuts include 5000 white collar jobs, which were announced last week.

Avtovaz said 13,000 employees would retire with pensions while another 5500 would be forced to take early retirement. The other 9100 would leave the firm, but Avtovaz said 6000 of those would have the option to return to work in 2012.

The Russian firm, which is 25 per cent owned by Renault, has seen 40 per cent year-on-year drop in sales.

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24 September 2009

Yes 6000 can return in 2012 when Opel transfers most of production to Russia.

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