Severstal cuts staff with 9000
Russian steel major Severstal will cut staff with 9000. That will have consequences also for the company’s subsidiary in the Kola Peninsula, the Olcon plant.
All of the staff cuts are to be made in the company’s units in Russia, RIA Novosti reports. From before, the company has also reduced activities in its foreign assets. Parts of the cuts in Russia were made already late last year, company director Aleksey Mordashov told the news agency.
A major part of the reduction will be made in the company’s Cherepovets plant in Vologoda Oblast. However, also the subsidiary in the Kola Peninsula, the Olenegorsk mining and processing plant (Olcon), is likely to be affected.
As BarentsObserver reported, the Olcon plant in November 2008 was forced to stall production for several days following shrinking demands. The plant has since been a constant worry for regional authorities in Murmansk Oblast fearing a boost in regional unemployment.
The news from Severstal comes as unemployment in Russia is steadily increasing. According to new statistics, more than 2,6 million Russians are now officially unemployed.
