4 March 2026
Moscow Mayor Sergei Sobyanin announced a 15% reduction in the number of civilian employees in the Moscow City Hall and employees of subordinate institutions performing administrative functions. The decision was made following a review by the Moscow Government Presidium of the city budget execution for January and February of this year.
According to Sobyanin, the cuts will be due to a slowdown in budget revenue growth: in the first two months of the year, revenue increased by 2%, compared to the planned 6.5%. Authorities believe it is necessary to optimize expenditures to ensure the stability of the capital’s financial system. The Moscow government also intends to reduce the 2026 investment program by 10%. These decisions will ensure the continued fulfillment of social obligations, funding for military personnel and their families, and initiatives from the Ministry of Defense, the mayor stated.
It is estimated that approximately 20,000 people work directly in the Moscow City Hall and the Moscow government. Hundreds of thousands more are employed by agencies, subordinate institutions, municipal enterprises, and city companies, while the capital’s overall administrative and business structure comprises up to 900,000 people and 2,500 companies. Against this backdrop, a 15% reduction in management personnel could affect at least 3,000 employees.
Growing economic problems due to the war and sanctions have impacted the financial stability of most Russian regions. By the end of 2025, the deficit had sharply increased because the regions, with total revenues of 22.6 trillion rubles (up 4% from 2024), spent 24.1 trillion rubles (up 9%). In absolute terms, Moscow had the largest deficit (299 billion rubles). Moscow’s budget is already in deficit—revenues for 2026 are planned at 5.9 trillion rubles, and expenditures at 6.4 trillion rubles.
A shrinking revenue base led to record regional budget deficits last year. According to the Federal Treasury, the budgets of the constituent entities of the Russian Federation in 2025 were executed with a deficit of 1.54 trillion rubles, which is almost four times higher than the deficit in 2024. The consolidated budget of the Russian Federation in 2025 was executed with a deficit of 8.3 trillion rubles last year.
This is not some back country crap hole that this level of budget cut is necessary but the capital city of mordor.