Russia's largest tank factory plans cuts, supplies to army not threatened

Uralvagonzavod, Russia's largest manufacturer of tanks and railcars, has announced a restructuring to cut costs, with plans to lay off up to ten percent of its workforce by February, according to internal documents.

The factory will also suspend hiring new employees, according to local news agency E1.
The company is based in Nizhny Tagil, about 1,400 kilometres east of Moscow, and is under Western sanctions for supplying tanks used in the war in Ukraine.

But it has declared that it is continuing to produce T-90M tanks and upgrading the T-72B3M. Despite the planned cuts, the company says it is working hard to meet the state defence order and is still recruiting in some areas.

However, it is facing a drop in demand for freight wagons, which is linked to export restrictions. Some employees are already working a four-day week.

Similar measures are being introduced by a number of large Russian companies, including metallurgical and automotive companies, which are reducing staff numbers or introducing forced leave as a result of the slowing military economy and lower domestic demand.

(reuters, max)