Russia’s largest carmaker, Avtovaz, is to cut up to 27,600 jobs as it tries to cope with the global slump in demand.
The job cuts are more than a quarter of the 102,000-strong workforce at Avtovaz, which makes Lada cars.
Reports had suggested that 36,000 job losses were considered, but the company said that it managed to “significantly lower the initial figure”.
Russia had the fastest growing car market in Europe until the financial crisis hit demand.
“Today, 102,000 people work at Avtovaz,” the carmaker said.
“Such a number cannot guarantee effective and profitable production, therefore we have agreed to reduce the personnel by 27,600 people.”
This includes 5,000 job cuts in “white collar” jobs announced last week, it said.
Of the workers being eliminated, Avtovaz said 13,000 employees would retire with pensions while another 5,500 would be forced to take early retirement.
The remaining 9,100 employees would leave the firm, but Avtovaz said 6,000 of those would have the option to work at the carmaker again in 2012.
Sales have dropped 40% this year as consumers, hard hit by the financial crisis, have shunned the carmaker.