Ukraine intelligence: One in ten Russian companies plan job cuts

This fall, one in ten companies in Russia plans to reduce staff due to falling demand, rising taxes, and higher loan rates, according to Ukraine’s Foreign Intelligence Service.

“Businesses are forced to cut costs because of declining demand, increased taxes, higher loan expenses, and the need to raise salaries for a small circle of key employees,” the agency said.

The largest layoffs are expected in construction, retail, consulting, engineering, and extractive industries. The most vulnerable workers include young specialists, administrative staff, marketing specialists, non-technical IT employees, and “anyone whose work does not generate direct profit.”

“In industry, low-skilled workers are particularly at risk, as they are increasingly replaced by machines and automated processes,” the report said.

Even Russia’s largest state corporations are affected. 

“[State-run] Gazprom has already announced the dismissal of 1,600 central office employees, while the United Aircraft Corporation Rostec plans to cut about 1,500 managers in Moscow,” the agency said.

Despite official statistics reporting a “labor shortage,” the situation in the Russian job market is rapidly deteriorating. 

“The Russian economy is entering a phase of systemic layoffs, which will inevitably hit consumer activity and living standards, especially in the regions,” the report said.

Earlier, German Gref, head of Russia’s largest bank, Sberbank, reported that Russia’s economy essentially stopped growing in the second quarter of 2025. Production, investments, and incomes showed little to no increase, while business activity sharply slowed.