The crisis is gaining momentum — Russia forecasts large-scale staff reductions
Kyiv • UNN
The Russian economy is demonstrating a systemic decline due to the war against Ukraine, which is affecting the labor market. This summer, state enterprises and private companies in Russia will begin cutting staff.
The Russian economy amid the protracted war against Ukraine continues to demonstrate signs of systemic decline, which is increasingly affecting the labor market. As early as this coming summer, a number of state and private enterprises in Russia may begin large-scale staff reductions, reports UNN citing the Foreign Intelligence Service of Ukraine.
Details
Among the key causes of the crisis, they cite the growth of the tax burden, limited access to credit resources due to high interest rates, as well as the decline in companies' profitability. The latter, according to them, is linked to the reduction in the population's purchasing power and the overall slowdown in economic activity.
Currently, some employers are trying to avoid mass layoffs by reducing the length of the working week to three or four days.
However, the SZRU notes that such measures are temporary in nature and unable to compensate for deep structural imbalances. In the absence of economic recovery, businesses will likely be forced to resort to more radical steps, including staff cuts.
An additional negative factor could be the seasonal decline in business activity in the summer, which could potentially accelerate the wave of layoffs in various sectors. As a result, this creates risks of rising unemployment in Russia as early as the coming months.
Thus
Recently, Russia's budget deficit exceeded the annual plan within three months, the Kremlin is seeking money from businesses and citizens. Indeed, in just the first quarter of 2026, Russia's deficit amounted to 4.6 trillion rubles against a plan of 3.8 trillion.