One in four companies in Russia is planning layoffs

Russian companies are increasingly considering downsizing their workforces. According to a survey by the Russian-German Chamber of Foreign Trade, 23% of companies plan to optimize their workforce by the end of the year. The survey included 265 companies—ranging from small businesses to large corporations. Most employers planning layoffs intend to cut their workforce by about 10%. More than half of the companies stated that they do not plan to change their headcount for now. Only 14% of respondents intend to expand their teams.

Why companies have started cutting costs

Economists explain that businesses are under serious pressure.

Several factors are affecting businesses simultaneously:

• slowing economic growth;
• tax increases;
• high interest rates on loans;
• a shortage of available funds;
• delayed payments from partners and customers.

Olga Bilenka, head of the macroeconomic analysis department at Finam, noted that these very issues are forcing companies to look for ways to cut costs.

For many employers, one of the simplest solutions is to reduce headcount.

Large companies have already begun downsizing

It is not only small businesses that are the first to be affected. Recently, several major Russian employers have announced large-scale layoffs. Sberbank CEO German Gref previously stated that the bank has already cut about 20% of its so-called inefficient staff. According to him, this amounts to approximately 14,000 employees.

Gazprom announced its intention to reduce its central office staff from 4,000 to 2,500 employees. Russian Railways reported cuts of about 15% of its central office staff. That is approximately 6,000 people. Staff optimization is also being prepared by:

• Prosveshchenie Publishing House — about 20%;
• Magnitogorsk Iron and Steel Works — about 10%;
• the state corporation VEB.RF — about 15%.

Which industries are at the greatest risk

Analysts believe that the wave of layoffs may continue into 2026. According to Freedom Global expert Natalia Milchakova, the greatest risks are currently observed in:

• the financial sector;
• retail trade;
• the coal industry;
• metallurgy;
• the automotive industry;
• the public sector;
• the public sector.

Experts attribute this to the fact that employers are increasingly automating routine tasks, and the need for certain staff is gradually decreasing.

But the labor shortage hasn’t gone away

Despite reports of layoffs, the situation remains the opposite in some sectors. According to experts, there is still a shortage of workers in:

• construction;
• transportation;
• logistics;
• the IT sector;
• manufacturing.

It is in these sectors that employers continue to actively seek new employees. However, another problem arises—not all people affected by layoffs possess the skills required in these industries.

What this means for the economy

Economists warn that the consequences could be felt not only by individual workers. If unemployment begins to rise, it could slow wage growth and reduce consumer spending. People will start buying fewer goods and services, which in turn will put even more pressure on businesses.

Economist Kirill Rodionov notes that even rising oil revenues are no longer able to fully offset the problems accumulating in the economy. According to him, based on the results of the first half of the year, Russia will most likely again see a decline in budget revenues compared to last year. Therefore, more and more companies are trying to cut costs right now—and staff reductions are becoming one of the main tools for such cost-cutting. This is reported by Russian media.