Russian carmaker Avtovaz to cut 27,700 jobs: report

Russian car giant Avtovaz, which makes the Lada model, plans to cut around 27,700 jobs amidst plummeting demand for its cars, the Interfax news agency reported on Monday.

Interfax said Avtovaz vice president Igor Komarov announced the plan to cut 27,691 jobs at a meeting with suppliers attended by the governor of the region.

Avtovaz currently employs 110,000 workers and the job losses would be among the biggest at a single company in Russia in the ongoing economic crisis.

Avtovaz, which fell to 24.7 billion rubles (563 million euros, $799 million) net loss last year after a profit of 3.7 billion rubles in 2007, has already planned to cut production in August - its second such move this year.

The Russian government had, in late March, offered to provide the struggling auto firm with a loan of 25 billion rubles.

Avtovaz, which is 25 per cent owned by French carmaker Renault, is a Soviet-era firm and one of the least efficient in the industry.