Peterform

History

2022: Dismissal of employees in Russia

Magna International, the largest auto parts manufacturer, is laying off employees in Russia, which became known in early August 2022. Peterform LLC, which is part of the group, reduces downtime losses by offering employees to quit by agreement of the parties with compensation in the amount of five salaries, the company's employees told Kommersant.

The company has been idle since the beginning of March 2022. There are about 500 people in the state at the Kamenka industrial site (the plant produces components for Hyundai). The staff reduction is expected in the near future, according to the publication of August 5, 2022.

Two shifts are fired. One remains, and then not in full force, "one of the employees of the enterprise told the newspaper.

The general director of Peterform LLC Roman Gang has not yet notified the city committee on labor and employment of the planned staff reduction, but the company will be obliged to inform if the corresponding decision is made

According to Kommersant, although Magna is not going to leave the Russian market by the beginning of August 2022, due to the lack of operating activities, it has to actively reduce costs, most of which is the wage fund. Earlier in the report for the second quarter and the first half of 2022, the concern announced that it would resume production of components no earlier than 2024. Experts believe that the company will soon leave Russia, selling production facilities to one of the partners.

In Russia, Magna produces at six sites, of which two are large in St. Petersburg - in Kamenka and Shushary. Enterprises have been created to provide components for automotive clusters located in the regions of the country. In total, the company has 2 thousand employees in Russia.

Canadian Magna is under great pressure from the national authorities, which occupy, in relation to Russia, in connection with the conduct of a special military operation, an extremely tough position, says Mikhail Burmistrov, general director of the Infoline-Analytica agency.

"The company most likely already understands that its business in Russia will need to be curtailed and its production facilities will be closed. I regard the chances of maintaining my presence as extremely low, and, probably, here the only option remains some kind of opportunity to find a partner who could buy out these production facilities, "the expert believes.^[1]

Notes