AvtoVAZ to Cut 5,000 Jobs
Nevertheless, a decision is yet to be made, a source familiar with the matter told Reuters, but the first step towards such a cost-cutting measures have already been made. "Such an order is being prepared. It will be signed on Sept. 14," the source said.
The Russian market fell by more than a half compared to last year, in spite of the country's serious efforts to reduce the drop.
In early April, the company received up to 8 billion rubles ($239.5 million) in loans from two state-controlled lenders, Sberbank and VTB. That amount slowly increased to 33 billion rubles ($1 billion), until the carmaker announced in July it has spent it all, mainly to honor debts to its suppliers.
Workers obviously do not agree with the cost-cutting measures so in August approximately 2,000 employees demonstrated against pay and production cuts. They also demanded the Russian government to control the automaker and begin an investigation concerning alleged misuse of funds by the company's management.