Russian carmaker Avtovaz to keep four-day work week through 2025 to clear inventory

MOSCOW (Reuters) -Russia's top carmaker Avtovaz will stick to a four-day work week until the end of 2025 to clear excess inventory, Russian news agencies reported on Tuesday, citing CEO Maxim Sokolov.

Avtovaz, which employs more than 30,000 people, said in July it might shorten the work week from five to four days, just like with other Russian carmakers struggling to find buyers for their cars. It pointed to the central bank's high interest rates as a key factor.

Sokolov's comments are the first statement from a company official on the topic, but Avtovaz's trade union earlier said that the week had been shortened starting from September 29.

"The plan we submitted for board approval involves a return to a five-day work week from January 2026. It was necessary to reduce inventory," state agency RIA cited Sokolov as saying.

Avtovaz hopes that Russian car market sales will jump to 1.5 million vehicles in 2026, Sokolov said. He did not provide a new forecast for 2025, but in June he said that sales would likely drop by 25% to 1.1 million units.

Russia's industrial giants, struggling with weakening domestic demand, high interest rates and shrinking export markets, are reducing working hours and laying off workers.

(Reporting by Gleb Stolyarov; Editing by Maxim Rodionov and Tomasz Janowski)