Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

X5 Will Lay Off Third of Managers

X5 Group, the country's biggest food retailer, said Monday that it would lay off up to one-third of its 3,000 managerial workers to cut costs during the global financial crisis.

"This step aims at increasing our efficiency on the operational level," said Anna Kareva, X5's director of investor relations.

She said the company would cut only managerial jobs, which account for around 7 percent of the head count.

"Before the crisis, most retailers had not thought about operational efficiency. Many of them had bloated staff ... and now there is a good reason to get rid of some employees," said Anton Belogorodov, from consultant Ward Howell Russia.

Some other Russian retailers, including Paterson, ALPI and Vester, had already cut their work forces, according to market sources.

X5 this month cut capital expenditures by about 30 percent because of the financial crisis.