TOGLIATTI, November 9 (RIA Novosti) - Struggling Russian auto giant AvtoVAZ has set up two affiliated companies to give jobs to 15,000 redundant workers, First Deputy Prime Minister Igor Shuvalov said on Monday.

"The two firms... are 100% affiliates of AvtoVAZ," Shuvalov said after meeting with workers, adding that the companies will employ workers of pre-retirement age, retirees and working-age employees, who will be rehired later.

The carmaker has moved to cut workforce as part of its anti-crisis program. Earlier reports said the company, which currently employs 100,000 people, plans to lay off 27,600 of its workforce.

The management has pledged to rehire 7,400 working-age employees after an upgraded assembly line is launched, and they will in the meantime work on other AvtoVAZ projects.

The government had already approved the allocation of $1.3 billion to cover the auto giant's debts, $412 million for new production lines and $165 million for social programs for laid-off staff.

The carmaker has recently asked the government for an additional 5 billion rubles ($170 million) in investment to make competitive products.