BS reported that Russia largest car maker, AvtoVAZ plans to lay off 36,000 employees including 5,000 white collar staff by December 1st following dipping auto sales and mounting losses.

The company known for its Lada brand cars recorded a loss of USD 447 million between January to June 2009 against a net profit of USD 47 million during the same period last year.

Sources in the Health and Social Development Ministry said AvtoVAZ, based in Togliatti in the Volga region would lay off one third of the plant's 110,000 strong workforce.

State run Vesti FM radio reported that the job cuts would be gradual and those rendered jobless would receive unemployment benefits from the state including early retirement.

The car plant is the largest local employer. The leader of Yedinstvo Trade Union of AvtoVAZ plant Pyotr Zolotaryov has accused the management of violating labour laws saying the staff has not been informed of cuts.

(Sourced from Business Standard)