Volkswagen has announced that the company will be cutting a shift from its Russian plant in Kaluga, which will result in 150 job losses.
The German automaker said, starting this April, the Kaluga car plant located in south of the capital Moscow, will only work for four days a week until July, and in the month of May the number of shifts will be cut down from three to two.
With the announcement, Volkswagen has joined the ranks of General Motors, which are scaling back operations in the country due to the economic meltdown and political scenario.
According to reports, car sales in the country has dropped drastically, and the value of Russian currency has also weakened, which is further hurting demand for cars.
Reuters cited Volkswagen as saying: "In the first months of 2015 the Russian auto market continued to feel the impact of a weakeconomy, significant price increases and high interest rates. We don't expect that to change in coming months."
The company also highlighted that it will offer compensation packages to employees opting to quit by mutual agreement.
