News - Lada
Russian car giant to slash 27,000 jobs
Going backwards: The Lada Priora is one of a new-generation Russian of cars finding the going tough in a stalled economy.
AvtoVAZ to slash a quarter of its workforce as Russian market decline deepens
29 September 2009
RUSSIA’S biggest car manufacturer AvtoVAZ announced last week that it is cutting a quarter of its workforce.
The Russian marque, which builds cars under the Lada brand and is 25 per cent owned by Renault, said in a statement released last Thursday: “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.”
Most of the AvtoVAZ workers are at its plant in Togliatti, south-east of Moscow. The company was reportedly considering a workforce reduction of 36,000 employees but was able to “significantly lower the initial figure”.
About 5000 of the 27,600 jobs are white-collar positions.
"The enterprise is working on one shift and at 65 per cent of capacity,” the company said. “Cutting personnel is essential in such a situation.”
Overseas reports indicate that Lada sales are down 40 per cent year-on-year after the rapidly growing Russian car market stalled in 2008. A day after the job cuts were announced, news agency Reuters reported that AvtoVAZ had plans to assemble cars for Renault alliance partner Nissan by 2012.
Share with your friends
Motor industry news
GoAutoNews is Australia’s number one automotive industry journal covering the latest news, future and new model releases, market trends, industry personnel movements, and international events.
All Lada models
Research cars by brand