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AvtoVAZ to Cut 7,500 Jobs
Lada-maker OAO AvtoVAZ says it will eliminate 7,500 jobs to offset the impact on sales of Russia's slumping economy.
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Lada-maker OAO AvtoVAZ says it will eliminate 7,500 jobs to offset the impact on sales of Russia's slumping economy.
AvtoVAZ describes the move coupled with tighter inventory control and other cost-cutting steps touching all operations as "urgent measures" to preserve profitability.
The company says 5,000 of the eliminated jobs will be manufacturing related. White-collar workers will account for the balance. The cuts will be accomplished mainly through a hiring freeze and attrition, according to the company, which did not provide a timetable for the reductions. AvtoVAZ also plans to reassign some workers to other divisions.
Russia's new-car market doubled to 2.94 million units from 2009 to 2012, according to the Moscow-based Assn. of European Businesses. But the market shrank to 2.78 million vehicles last year, and AEB predicts a further decline to 2.73 million in 2014.
The association reported last week that Lada sales, while still more than twice those of the nearest competitor, fell 15% to 456,300 units last year.
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