Russian Railways cuts staff and investments amid falling freight volumes - intelligence
Kyiv • UNN
Russian Railways is preparing to cut management staff and freeze hiring due to declining transportation volumes. The company's net profit for the first half of 2025 fell by 95%, and the investment program was cut by 40%.
Russian Railways is preparing to cut management staff and freeze hiring in an attempt to increase efficiency amid declining traffic and a deteriorating economic situation. First of all, the company will eliminate existing vacancies and limit the recruitment of new employees, UNN reports with reference to the Foreign Intelligence Service.
Details
According to intelligence data, the volume of freight traffic of Russian Railways has been decreasing for the fourth year in a row: by 3.9% in 2022, 0.2% in 2023, 4.1% in 2024, and 6.7% in the first nine months of 2025. The largest drop is recorded in the transportation of grain (–26.6%), cement (–13.8%), and building materials (–13.1%).
To avoid mass layoffs, in August, Russian Railways introduced forced unpaid leave for managers. Employees of the central office must take three additional days off per month at their own expense. The company, which employs about 700,000 people, is trying to reduce costs without directly cutting staff. Financial indicators have sharply deteriorated: net profit for the first half of 2025 fell by 95% - to $33.75 million against $173.8 million in 2024 and $1.48 billion in 2023. The investment program has been cut by 40% - from $16.3 billion to $10.7 billion, which affected infrastructure modernization, rolling stock renewal, and projects aimed at increasing raw material exports to China.
The intelligence added that the Russian company's debt currently amounts to about 2.77 trillion rubles. It is expected that in 2026, Russian Railways will face a shortage of working capital to service loans and finance eastern projects, including the expansion of the Baikal-Amur Mainline and integration with Chinese logistics routes.