Downsizing: Avtovaz to cut 11% workforce

The Russian govt has spent billions of dollars trying to prop up its struggling carmakers, including Avtovaz.

MOSCOW:

Avtovaz, Russia’s largest carmaker, announced its plans to fire 7,500 workers, almost 11% of its workforce, in its struggle to cut costs and return to profits.

The carmaker, which is set to be controlled by the French-Japanese carmaker Renault-Nissan by mid-2014, now employs 66,500 people.

“The standard headcount of managers, specialises and clerks will be cut by 2,500 jobs,” the automaker, said in a statement.

“Also a reduction by 5,000 jobs is anticipated by the end of the year within framework of productivity improvements.”

The Russian government has over the past years spent billions of dollars trying to prop up its struggling carmakers, including Avtovaz.

Weary of possible social consequences, the government has long resisted drastic measures such as laying off personnel at car plants all together.

Published in The Express Tribune, January 26^th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.