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"We inherited this administrative staff, and it is not adequate. We will interview every employee individually and then decide who will stay and who will go," said Krishtal.

He denied rumors about changes in the company's board and confirmed that the only board member Igor Kovalenko will remain in his position and keep running the company. The board will soon have another member – Igor Kozlenko.

Krishtal said that many administrative staff members have inadequately-high salaries – EUR 3,000 to EUR 5,000 a month. "People with such salaries ought to be running their own companies, instead of performing small-scale administrative activities," said Krishtal.

He said that engineers and department managers will not be laid off. The layoffs will concern only accountants, clerks, economists, purveyors, etc.

"It is not okay if Liepaja city has 20 economists and financiers who earn at least EUR 1,500 to EUR 1,800. In Kiev, the entire KVV Group, which is much larger, is operated by four economists and one senior economist. The accountancy department, too, has salaries no lower than EUR 1,500. Furthermore, a lot of people work in trade and logistics sectors. These salaries are inadequate, as compared with the EUR 1,200 that steel founders receive," Krishtal stressed.

He said that a number of administrative staff members will have to be laid off, while others will receive lower salaries.