Russian Tank and Wagon Manufacturer Uralvagonzavod Implements Workforce Reductions
Nizhny Tagil, russia – Uralvagonzavod (UVZ), Russia’s leading manufacturer of both armored vehicles and railway wagons, is implementing workforce reductions, sending some employees on shortened work weeks or unpaid leave. The move comes amid a broader trend of economic strain impacting Russian industries, linked to the ongoing conflict in Ukraine and a slowdown in the war economy.
UVZ’s press office stated the changes primarily affect specialists in the civilian segment,citing “a decline in demand for civilian production.” Despite this,the company maintains it is “continuing stable operations thanks to diversified production,” referencing fluctuations in the railway wagon market.
Employees impacted by the reductions are being offered opportunities to transfer to areas within the company with higher order volumes.
Headquartered in Nizhny Tagil, UVZ produced approximately 20,000 employees as of 2021 and had plans to increase staffing by 5,000 annually following the February 2022 invasion of Ukraine. The company manufactures T-90 and modernized T-72 tanks, and is a key component of the state-owned Rostec conglomerate, which comprises 15 holdings, including 11 arms companies.
the situation at UVZ reflects a wider pattern of economic challenges in Russia, with multiple companies reportedly resorting to similar measures, according to Reuters. These challenges are attributed to both the economic impact of the war and decreased domestic demand.
