14 November 2026
Russian companies may begin laying off staff next calendar year due to declining demand and a lack of positive market expectations. “When such forecasts for 2027 are clearly not very optimistic, there’s no economic reason to retain [employees], only social [reason] remains,” Interfax quotes Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs.
Many companies are currently maintaining their workforce, moving them to a shorter workweek, hoping for an economic recovery. However, if the wait drags on without positive progress, businesses will begin laying off workers, Shokhin stated. According to the head of the Russian Union of Industrialists and Entrepreneurs, if the Central Bank’s current tight policy and the budget “hole” persist, Russian economic growth in 2027 “could go negative, or at least approach zero.” Shokhin also stated that he does not expect the Central Bank’s key rate to be lowered until at least February 2027, and called for tax and credit concessions for large companies, especially in single-industry towns, where they are the main employers of local residents.
Growing economic problems are forcing Russian businesses to cut personnel costs. Forty percent of companies surveyed by the Russian Union of Industrialists and Entrepreneurs (RSPP) in July intend to do so, a share that has nearly doubled in three months. Among these firms, more than a quarter (28.1%) are considering layoffs, and one in five (20%) plans to reduce salaries and/or optimize benefits.
Specifically, Russian Railways plans to cut 15% of its central office this year, or about 6,000 people. New Cloud Technologies, the developer of the “Russian Microsoft Office,” has laid off nearly 80% of its employees. Magnitogorsk Iron and Steel Works is laying off 10% of its management staff, and Severstal owner Alexey Mordashov hasn’t ruled out the possibility that the company will have to resort to personnel “optimization.” Large-scale layoffs are also underway at major banks, including Sberbank and VTB.
Many companies, facing a drop in demand, are trying to survive the difficult times by sending employees on unpaid leave or transferring them to part-time work. 17.5% of enterprises surveyed by the Russian Union of Industrialists and Entrepreneurs (RSPP) intend to do so. However, hiring cuts were cited as the primary optimization tool.