A wave of layoffs is expected in Russia due to the deteriorating economic situation
Against the backdrop of the protracted war against Ukraine, the Russian economy is showing signs of a systemic downturn, which could lead to large-scale layoffs as early as this summer.
This is reported by the Foreign Intelligence Service of Ukraine.
According to the SSU, the key factors contributing to the worsening situation are the rising tax burden, limited access to credit due to high interest rates, and declining corporate profitability.
It is also noted that businesses are under pressure from a decline in consumer purchasing power and a general slowdown in economic activity.
Currently, some employers in Russia are attempting to avoid mass layoffs by reducing the workweek to three to four days. At the same time, as noted in the intelligence report, such measures are temporary and do not address the economy’s structural problems.
In the absence of economic recovery, companies may resort to more radical measures, including workforce reductions.
An additional risk factor could be the seasonal decline in business activity during the summer, which could potentially accelerate a wave of layoffs across various sectors.
The SZRU warns that the combination of these factors creates the conditions for rising unemployment in Russia in the coming months.
