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The Russian manufacturer of railcars and tanks has announced a restructuring plan to reduce costs

The giant Russian railcar and tank manufacturer Uralvagonzavod said Friday that it would be restructuring its operations in order to reduce costs. A local report had stated the company planned to cut its workforce by 10%.

The Uralvagonzavod plant, located in Nizhny Tagil about 1,400 km east of Moscow in Nizhny Tagil, has been sanctioned for its role in providing tanks to Moscow's Ukraine war.

The factory is owned by a state-controlled conglomerate that has ties to one of Vladimir Putin's closest allies. It claims publicly to produce T-90M battle tank and modernise T-72B3M.

Local news outlet E1 reported on Friday, citing an internal document that UVZ planned cuts of up to 10% in staff across departments by February next year. They also said they would stop hiring new employees.

In a response to questions about the report, UVZ issued a press release that read:

"UVZ, like every other company, is undergoing a restructuring process, which aims to optimise administrative and management costs."

UVZ said it continued to work at "high intensity" in order to fulfill a state defense order. The hiring of new employees continued.

The company has been forced to reduce the number of days that some employees work to four last month due to the steep drop in the cargo volume as a result of disruptions to exports.

Sources and companies say that Russia's largest industrial companies are furloughing employees or reducing staff due to the slowdown in the war economy, stagnant domestic demand, and dry exports. (Reporting and editing by Andrew Osborn; Gleb Stolyarov)

(source: Reuters)