Yugoria lays off 850 people in first half of 2013
11 October 2013 (10:14)
October 11, 2013. Yugoria State Insurance Company laid off 30% of its personnel in order to stop the growing losses, Vedomosti reports.
The newspaper says the company made 850 people redundant in the first half of the year alone, and thus it now employs only 2,000 people. This resulted in the managerial expenses dropping from 3.1bn RUR in 2012 down to 1bn RUR in the first half of 2013. The decrease in the number of staff is supposed to bring down the managerial expenses by 34.7%, or down to 2.05bn RUR (as was the case in 2009).
As a matter of fact, this increase in the managerial expenses was the reason the company suffered so many losses over the last few years. The expenses went up by 1.94bn RUR in 2012 (in accordance with the IAS), and this figure 'reflected all of the company's known problems in their entirety, including liabilities, losses, and reserves,' it is said. Dumping is another reason for this: in 2011-2012, Yugoria would sign contracts 'at any price, with any insurer, especially in the European part of Russia'. Then, the budget expenses of Khanty-Mansiysky Autonomous Region (Yugra), the only owner of Yugoria, went down from 1.1bn RUR in 2009 to 300m this year.
The newspaper says the company made 850 people redundant in the first half of the year alone, and thus it now employs only 2,000 people. This resulted in the managerial expenses dropping from 3.1bn RUR in 2012 down to 1bn RUR in the first half of 2013. The decrease in the number of staff is supposed to bring down the managerial expenses by 34.7%, or down to 2.05bn RUR (as was the case in 2009).
As a matter of fact, this increase in the managerial expenses was the reason the company suffered so many losses over the last few years. The expenses went up by 1.94bn RUR in 2012 (in accordance with the IAS), and this figure 'reflected all of the company's known problems in their entirety, including liabilities, losses, and reserves,' it is said. Dumping is another reason for this: in 2011-2012, Yugoria would sign contracts 'at any price, with any insurer, especially in the European part of Russia'. Then, the budget expenses of Khanty-Mansiysky Autonomous Region (Yugra), the only owner of Yugoria, went down from 1.1bn RUR in 2009 to 300m this year.
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