Russian AvtoVAZ denies report of almost 28,000 jobs cuts

Avtovaz vice president Igor Komarov has denied reports that job cuts were announced at an AvtoVAZ suppliers' meeting and reaffirmed its commitment to preserving its workforce.

"This information does not correspond to reality," it said in a statement emailed to AFP.

"Igor Komarov did not announce any intention on the part of the company to reduce staff. The leadership expressed its engagement to preserving the labour collective under the current conditions."

It did not give further details over the contents of the meeting.

According to Russian newspaper Vzglyad, Avtovaz could cut a quarter of its 110,000 workforce amid plunging sales, reports said yesterday, underlining the severity of the economic crisis in Russia's auto sector.

Avtovaz vice president Igor Komarov announced a plan to cut 27,691 jobs at a meeting with suppliers, Interfax news agency reported, citing company sources.