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

    Learn what India's parties' symbols mean by drawing them

    Learn what India's parties' symbols mean by drawing them

    More than 2,300 political parties have registered for the largest electoral exercise in the world.

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Why did Bush go to war in Iraq?

    Why did Bush go to war in Iraq?

    No, it wasn't because of WMDs, democracy or Iraqi oil. The real reason is much more sinister than that.