Avtovaz offers Izhevsk staff $3,000 to quit voluntarily

Russia‘s biggest automaker Avtovaz which suspended some production because of sanctions and supply of components is offering workers at its Izhevsk plant a one-off payment of about $3,000 to take voluntary redundancy, the automaker said on Wednesday.

Avtovaz restarted production of some of its popular Lada models at its major plant in Togliatti in June after partially stopping output in the spring because of a shortage of electronic parts.

On Wednesday, it asked staff at the site located in Izhevsk, to either find a new job within the company or resign by the mutual agreement.

Those who resign will be provided with a one-off payment worth around five to seven times the average monthly salary, or about 12 times the minimum wage, approved by the state. The maximum payout would be 183,348 roubles ($3,161).

“Avtovaz emphasizes that the company doesn’t plan to carry out mass lay-offs, and the proposed supporting measures for the team are wholly voluntary for each employee,” the automaker said.

Russia has faced sanctions on the country mainly from western countries after the military conflict between Russia and Ukraine intensified on February 2022.