Russian carmaker to cut 27,600 jobs

Avtovaz to cut more than a quarter of its workforce due to slump in sales.

    Demand for the Lada, an Avtovaz car, has fallen sharply in the economic downturn [EPA]

    Russia's car market had been set to become Europe's largest, before the downturn left thousands of people out of jobs and the credit crunch hit lending.

    Avtovaz, which is 25 per cent owned by Renault, the French carmaker, has been losing money for years, with demand for its Lada sedan falling sharply in the economic downturn.

    The company's sales dropped by 44 per cent in the first six months of the year, according to the Association of European Businesses in Russia.

    Igor Komarov, president of Avtovaz, approved the latest layoff plan at a meeting with a trade union on Wednesday.

    The carmaker said it plans to rehire 6,000 workers by 2012 for a new production line that it is developing with Renault.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Assassinating Kim Jong-un could go so wrong

    Assassinating Kim Jong-un could go so wrong

    The many ways in which the assassination of the North Korean leader could lead to a total disaster.

    Lebanon has a racism problem

    Lebanon has a racism problem

    The problem of racism in Lebanon goes beyond xenophobic attitudes towards Syrian and Palestinian refugees.

    The life and death of Salman Rushdie, gentleman author

    The life and death of Salman Rushdie, gentleman author

    The man we call 'Salman Rushdie' today is not the brilliant author of the Satanic Verses, but a Picassoesque imposter.