The Hyundai Motor Manufacturing Rus plant in St. Petersburg has begun reducing its workforce. Reports indicate the factory is moving to a phased downsizing process.
Employees learned in mid-December that the reduction procedure had started. Contract terminations are slated to begin on January 16 and continue through February 3. Reductions of personnel are planned from January 23 to February 17. If the company cannot achieve the targeted workforce level by February 17, further reductions will proceed under the provisions of the Labor Code of the Russian Federation starting February 20.
Officials say the downsizing could affect up to eighty percent of staff. In addition, the company plans to pay twelve months of salaries to affected workers as part of the separation package.
Production at the St. Petersburg site had been suspended since March due to supply chain disruptions for spare parts, and the downtime has been extended over the months. Earlier this year there were discussions about the potential sale of the enterprise.
The plant previously produced models including the Hyundai Solaris, Hyundai Creta, and Kia Rio. The facility has an annual production capacity of around two hundred thousand vehicles.
In related industry news, announcements were made about newer electric vehicle concepts being showcased by other manufacturers, signaling ongoing transformation in the local automotive sector.