Russia car giant Avtovaz braces for mass job cuts
Russian car giant Avtovaz could cut a quarter of its 110,000 workforce amid plunging plunge
v. plunged, plung·ing, plung·es
1. To thrust or throw forcefully into a substance or place: sales, reports said Tuesday, underlining un·der·lin·ing
1. The act of drawing a line under; underscoring.
2. Emphasis or stress, as in instruction or argument. the severity of the economic crisis in Russia's auto sector.
Avtovaz vice president Igor Komarov announced a plan to cut 27,691 jobs at a meeting with suppliers, the Interfax news agency said, citing company sources.
The group however denied that job cuts had been announced at the meeting and reaffirmed its commitment to preserving its workforce.
"This information does not correspond to reality," it said in a statement emailed to AFP (1) (AppleTalk Filing Protocol) The file sharing protocol used in an AppleTalk network. In order for non-Apple networks to access data in an AppleShare server, their protocols must translate into the AFP language. See file sharing protocol. .
"Igor Komarov did not announce any intention on the part of the company to reduce staff. The leadership expressed its engagement to preserving the labour collective under the current conditions."
It did not give further details over the contents of the meeting.
The meeting was attended by former Avtovaz chairman Vladimir Artyakov, now the governor of the central Samara Samara, river, Russia
Samara (səmä`rə), river, c.360 mi (580 km) long, rising in the foothills of the S Urals, European Russia. It flows generally northwest, and joins the Volga River at Samara. region where the firm is based and which is hugely dependent on the carmaker's wellbeing.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Interfax, 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.
The RIA (Rich Internet Application) A Web-based application that approaches the speed and elegance of a local application. An RIA may refer to a browser-based application that uses AJAX or another enhanced coding technique. Novosti news agency said that the company was examining the option of cutting 25 percent of its workforce but that no final decision had been taken at Tuesday's meeting.
"Komarov said at the meeting that if current production and sales continue job cuts of more than 27,000 employees are possible," a source told the agency.
"I emphasise that this was brought up as a potential development of events and not as a concrete decision which has been taken," it added.
According to Interfax, Komarov announced that the company was now aiming to produce only 332,000 units for 2009 after producing 210,000 in the first half of the year.
The reports were the latest bad news for the Russian auto industry, which until last year had excited investors as the fastest growing car market in Europe but has been hit by a plunge in domestic demand.
The company, which is 25 percent owned by French carmaker Renault, 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.
Avtovaz, which was set up with Italy's Fiat in the Soviet era, is the key employer in Tolyatti, a city of 700,000 people on the Volga River Volga River
River, western Russia. Europe's longest river and the principal waterway of western Russia, it rises in the Valdai Hills northwest of Moscow and flows 2,193 mi (3,530 km) southeastward to empty into the Caspian Sea. in the Samara region that was named after an Italian Communist leader.
Russian unemployment has been steadily climbing amid the economic crisis, which suddenly brought an end to the best half-decade of growth in the country since the collapse of the Soviet Union.
There have been occasional expressions of social discontent which were almost unheard of Not heard of; of which there are no tidings.
Unknown to fame; obscure.
See also: Unheard Unheard until the crisis and the government has said it is acting to prevent major outbursts of unrest Unrest is a sociological phenomenon, for instance: