A plant that produces ships for the Russian Defense Ministry is laying off workers due to lack of money
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Staff reductions have begun at the Vympel shipyard in Rybinsk, Yaroslavl region of the Russian Federation, due to financial problems. This is reported by the Russian RBC with reference to informed sources.

The company is part of the United Shipbuilding Corporation (USC), which, according to the Russian Ministry of Finance, has a cash deficit of more than 1 trillion rubles ($12 billion).

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According to the newspaper's sources, at least 33 employees out of 950 who worked at the plant as of July 1 have already received layoff notices. It is also possible that the layoffs will take place in several stages by the end of the year.

Only support staff will likely be laid off, while production workers will be retained.

Interlocutors from Rybinsk SBS and JSOC explained that the decision was made due to the lack of production volumes and the need to cut costs.

The corporation promised to provide the dismissed employees with alternative vacancies at other companies and pay compensation.

"Vympel builds small and medium-tonnage ships, including missile boats for the Russian Defense Ministry, patrol and anti-sabotage boats for the FSB border service, and hydrographic vessels for the Navy.

The plant also produced five Kometa 120M hydrofoil passenger vessels that operate on routes in the Azov and Black Seas.

The situation at the plant deteriorated after the Russian Ministry of Industry and Trade proposed to the government in late July to cut funding for the civilian fleet modernization program by more than 40%, from 231 to 134.8 billion rubles.

The reason is called lack of funds in the National Welfare Fund and the federal budget deficit, much of which is spent on the war against Ukraine.

As a result, 69 vessels were removed from the construction plan, including cargo, fishing and dredging vessels.