Moscow's Aviation Corporation to Shed 1,500 Jobs Due to Ural Manager's Decision
Let's Chat About UAC's Drastic Changes 🚀
The United Aircraft Corporation (UAC), a division of state corporation "Rostec", is shaking things up big time! They've announced plans to slash over 1,500 management roles, as reported by RBC, with the big boss, Valdimir Badikh, leading the charge.
But don't worry, design bureaus are safe, according to Badikh. The real focus here is on boosting efficiency, which includes optimizing the workforce and reducing losses. He mentioned that the corporation is aiming for a whopping 30% increase in labor productivity by 2030—no small feat!
As of 2024, UAC's workforce was 93.4 thousand strong, with a mere 9.34 thousand in management roles (less than 10%). The rest were production personnel, working to build those fancy aircraft we all love. It's unclear how the staff structure has changed since then, but Badikh hinted that the manager cuts started last year.
Other moves on the table include tightening the purse strings and only funding costs that stay within project limits. The corporation also plans to minimize loss-making state contracts, which should help increase its revenue. Since 2020, UAC has been in the red, racking up losses of at least 30 billion rubles yearly. However, in 2024, they managed to narrow the loss to 14.2 billion rubles, with revenue of 198 billion rubles. The goal is to end 2025 with a result "close to zero."
Badikh is no stranger to the aviation world. Born in 1977 in the Sverdlovsk region, he's been working in aviation for over 15 years and has held numerous leading positions. He took over as head of United Aircraft Corporation in 2023, and since then, he's also managed the United Engine Corporation and PJSC "Yakovlev".
Quick trivia: in 2019, Badikh was nominated for the "Investor of the Year" category in Russia. Interesting, huh?
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In the midst of UAC's drastic changes, there are plans to optimize the workforce and reduce losses, particularly in finance and management, which could have a significant impact on the industry's business efficiency. To boost labor productivity, UAC aims to achieve a 30% increase by 2030, a notable challenge given the current workforce structure.
