Under pressure AvtoVAZ is planning a further downsizing of its workforce, but don’t expect anything too dramatic on top of reductions that have already happened.
Itar-Tass reported that the number of employees is projected to fall to around 69,000 by 2020, citing remarks buy the company’s president Igor Komarov at a meeting of the Samara Region’s government this week.
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The number of employees at the company in 2020 is expected to correspond with its plans to produce 1.2 million vehicles per year at that time, Komarov said.
Itar-Tass noted that it has been reported that AvtoVAZ plans to cut its workforce to 72,000 people by the end of March from around 77,000 presently.
The report added that before the economic crisis the company had over 100,000 employees.
Analysts in Russia note that companies such as AvtoVAZ that account for much of the economic activity in their location are under pressure from the government to maintain employment levels as far as they possibly can. There have already been signs of unrest at Togliatti, home to AvtoVAZ, which have caused some alarm in Moscow.
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By GlobalDataRUSSIA: AvtoVAZ sees better times ahead
