Tuesday July 28, 03:33 PM
Russian car giant Avtovaz 'to slash 27,700 jobs'
MOSCOW (AFP) - Russian car giant Avtovaz, maker of the Lada model, is to cut almost 27,700 jobs in response to a drastic slackening in demand due to the economic crisis, a news agency has reported.
Interfax news agency, citing sources within the company, said Avtovaz vice president Igor Komarov had announced the plan to cut 27,691 jobs at a meeting with suppliers attended by the governor of the region where the firm is based.
According to Monday's Interfax report, the company currently employs 110,000 workers and if confirmed the job losses would be among the biggest at a single company in Russia's current economic crisis.
Company officials were not available for immediate comment.
The company, which is 25 percent owned by French carmaker Renault (Paris: FR0000131906 - news) , has already said it will suspend production for the month of August in response to falling sales, the second such move this year.
Avtovaz in early July reported a net loss for last year of 24.7 billion rubles (563 million euros, 799 million dollars) after a profit of 3.7 billion rubles in 2007.
The Russian government in late March said it would provide the struggling group with a loan of 25 billion rubles.
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