Kazakhstan's slowing economy is pinching the country's industrial heartland.
Several industrial behemoths have announced cutbacks that they blame on a toxic mix of factors hitting their bottom lines, from falling commodity prices to an overvalued tenge. And as the enterprises pass the losses onto their workers, Astana is looking on anxiously, with memories of violent unrest in Kazakhstan’s oil fields still fresh.
Copper producer KAZ Minerals (previously called Kazakhmys) announced on February 2 that it would temporarily shut down unprofitable operations and redeploy 2,000 employees to other projects—though it promised no “mass” job cuts for its staff of 60,000. Meanwhile, steel producer ArcelorMittal Temirtau slashed salaries in January, reducing local staff pay by a quarter and cutting expatriate salaries in half.
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