Volkswagen cuts down jobs and working hours at its Russian facility

Wednesday 25 March 2015, 09:39 AM by

Popular German carmaker has announced its plans to reduce shift timing and lay off about 150 workers at its Russian plant. The company is reportedly undertaking these new measures to cut down cost due to market downturn. Last year Volkswagen reportedly witnessed a sharp drop in car sales in Russia as its economy had been strongly hit by the fall in oil prices and Western sanctions over Ukraine.

Volkswagen cuts down jobs and working hours at its Russian facility | CarTrade.com
Volkswagen cuts down jobs and working hours at its Russian facility

Speaking more on the ocassion, Volkswagen said in an email statement to sources, “In the first months of 2015 the Russian auto market continued to feel the impact of a weak economy, significant price increases and high interest rates. We don't expect that to change in coming months. The Russian market still has a significant growth potential long-term.”

The Kaluga plant located in Russia shall be working four days a week from April to July this year and starting from May the number of shifts would decrease to two from three. To further help the company in adapting to current economic environment, its shall suspend the production activity for about two weeks on May 5-8 and May 12-15. The company also said it would not renew contracts with at least 150 employees and would offer some others the chance to move to its new auto parts warehouse in the Moscow region or an engine plant. Both of which are scheduled to open sometime later this year.

Source - Reuters

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