The Russian automaker AvtoVAZ has resumed its manufacturing operations after the New Year holiday and has reinstated its employees to a five-day workweek, as reported by the head of the company’s trade union to the Interfax news agency on Monday.

In late September, AvtoVAZ, the largest car manufacturer in Russia, took measures such as wage cuts, employee layoffs, and a reduction of its work schedule to four days due to declining sales figures.

Initially, AvtoVAZ anticipated that its workforce would return to a five-day workweek by March, but CEO Maxim Sokolov indicated in October that a faster return to normal operations could be possible as the company aimed to reduce excess inventory.

Last month, Sokolov informed trade union representatives that the five-day work week would commence in January. In Russia, the period from January 1 to January 11 is designated as a federal holiday in celebration of the New Year.

In 2025, AvtoVAZ scaled back its production of Lada vehicles from an expected 500,000 units to approximately 300,000.

Overall, sales of Lada cars decreased by 25% year-on-year during the first 11 months of 2025, leading to a reduction in the brand’s market share to 25.1%, according to data from the market research agency Avtostat.

“The market was sluggish in 2025,” Sokolov remarked in early December.

For the current year, AvtoVAZ aims to produce around 400,000 vehicles.