Volkswagen executives have announced that they will lay off at least 150 workers at its car factory location in Russia.
"In the first months of 2015 the Russian auto market continued to feel the impact of a weak economy, significant price increases and high interest rates," company officials wrote in an e-mail, according to Reuters.
"We don't expect that to change in coming months."
Western sanctions placed on the Russian government have negatively affected its economy, leading to a drop in car sales nationwide. Last week, General Motors officials announced that the company would be shutting down its factory in Russia. Nissan Motor Co has also suspended production in the country for over two weeks.
The Volkswagen location in Kaluga, which is located just outside of Moscow, will begin slowing down production in April.
Despite the cuts, the German carmaker remains committed to investments in Russia and seeks to maintain a market there.
"The Russian market still has a significant growth potential long-term," the statement also reads.
Volkswagen was founded in 1937 and is headquartered in Wolfsburg.
