Russian car giant Avtovaz said, will cut up to 27,600 workers because of slow sales due to the impact of the global economic crisis.
“Today, 102,000 people work in Avtovaz. An amount can not guarantee the effectiveness and profitable production,” said Coordinator with the Interregional Trade Union of Automotive Workers, Andrei A. Lyapin, reported The New York Times
Trimming is meant to represent nearly a third of the workforce in the company, which is 25 percent owned by Renault of France.
Previously, the manufacturer reported Lada icon will consider cutting as many as 36,000 employees, but said it had to “significantly lower in the early figures” for layoffs.
“Overall, no more than 27,600 employees will be laid off,” he said.
The figure, including the 5000 cuts white-collar jobs was announced last week.
Russia has a car market with the fastest growth in Europe until last year but then plunged into crisis by a decrease in domestic demand.
With a large amount of unsold stock, Avtovaz has stopped production a month after the crisis hit the market already under pressure from competition from imports.