Photo: Alexander Demyanchuk/TASS
Korean automaker Hyundai is starting to downsize its St. Petersburg plant. This was reported to the Autonews.ru correspondent in the company’s press service. According to Hyundai representatives, the reason for the dismissal of employees was the suspension of production, which has been going on since March 2022.
“Due to the continued suspension of production processes, Hyundai Motor is taking steps to optimize personnel in Russia. The company will fulfill all social obligations to employees affected by this, including the payment of severance packages for those who left by agreement of the parties,” the message read.
According to CASS, the company now has more than 2.5 thousand employees, of which about 2.2 thousand are inactive. What percentage of workers will be affected by the layoffs, Hyundai representatives did not specify. It’s also unclear when the company will begin the process of terminating the contracts.
O stoppage of production at the Hyundai plant in St. Petersburg, he became known in March of this year. Then the brand announced a breach of supply chains and a shortage of automotive components.
In mid-October, information on possible sale of Russian assets, which may be associated with financial costs to the business due to plant downtime. Hyundai has not given official confirmation of this data.
Recall that before the cessation of production, the plant produced the Hyundai Solaris, Hyundai Creta, Kia Rio and Kia Rio X-Line models.
Autonews previously reported that the dismissal process begins at the Toyota plant employees. Staff are offered compensation in the amount of 12 salaries.