By Olga Razumovskaya and Jason Chow
Avtovaz (AVAZ.MZ), Russia's largest auto manufacturer, plans to
cut 1,100 people from its workforce in a bid to steer the company
back to profitability during a slowdown in the country's economy,
said a spokesman.
Avtovaz, which is controlled by French car maker Renault SA
(RNO.FR) and Japan's Nissan Motor Co., is struggling as falling oil
prices, a sharp downturn in the Russian ruble and economic
sanctions have hit Russia's economy, sending demand spiralling
down.
In an internal document reviewed by the Wall Street Journal,
Avtovaz Chief Executive Bo Andersson and the head of the company's
union said that "in light of a tough economic situation," the
company will have to endure another round of layoffs.
Last year, Avtovaz, which makes Lada cars, slashed its workforce
by 12,000 workers to its current level of around 50,000. After the
2014 cuts, the company said it wouldn't lay off any more assembly
line workers and would focus on white-collar staff from the
management, engineering and administrative ranks.
Write to Olga Razumovskaya at OLGA.RAZUMOVSKAYA@wsj.com and
Jason Chow at jason.chow@wsj.com
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