The Volvo Group ( OTCPK:VLVLY ) has started to lay off significant amounts of personnel according to Russian state media.
The exact number of employees to be let go was not disclosed, not was the timeline for the headcount reductions to be completed. Production has been halted in the country since early March, shutting down shortly after Russia’s invasion of Ukraine. Sales into the country were cut off as well as shipments have been hit by sanctions.
“The Volvo Group plant in Kaluga will continue to function in the mode of temporary suspension of activities until a new decision is made. The plant’s employees currently continue to be idle,” the state media report read.
While Volvo is a nominally Swedish entity, the company has been majority controlled by Chinese conglomerate Geely Automobile since 2010. The peculiar multinational ownership structure complicates the company’s likewise multinational operations as sanctions and tariffs complicate the company’s supply chain.
Read more on charges the company has incurred due to its Russian operations .
For further details see:
Volvo begins layoffs in Russia after months of halted production