Sveriges AB Volvo is starting to lay off some Russian employees
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HELSINKI, July 5 (Reuters) – The truck manufacturer AB Volvo (VOLVb.ST) had begun to lay off some of its Russian staff and reduce operations, but has not made a decision to leave the country completely, it said on Tuesday.
In February, the Swedish company discontinued all sales, service and production in Russia, which last year accounted for approximately 3% of the Group’s net sales. Read more
“In the current situation, it is not possible for us to conduct operations in Russia,” a spokesman told Reuters in an email.
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“We have therefore made the decision to adapt by downsizing our operations in the country and start reducing the number of employees,” he said, adding that the local management is currently evaluating how many employees will be affected.
The company’s production facility in Kaluga, near Moscow, would continue to sleep, he said.
The factory employs 600 people and can produce 15,000 vehicles per year.
($ 1 = 10.4993 Swedish kronor)
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Reporting by Essi Lehto; editing by Stine Jacobsen and Jason Neely
Our standards: Thomson Reuters Trust Principles.