Economic crisis hits Russia: Mass job cuts reported by foreign intel
Illustrative photo: Mass layoffs have begun in Russia (Getty Images)
This fall, one in ten companies in Russia plans to reduce staff. Businesses are forced to cut costs due to falling demand, higher taxes, and more expensive loans, according to the Foreign Intelligence Service of Ukraine.
The largest cuts are expected in construction, retail, consulting, engineering, and the extractive industries.
The most vulnerable are young specialists, administrative staff, marketers, non-technical workers, and anyone whose work does not generate direct profit. In the industry, low-skilled workers are under pressure, actively being replaced by machines and automated processes.
Cuts have affected even the largest state corporations. Gazprom has already announced the dismissal of 1,600 central office employees, while the Rostec aviation corporation plans to cut about 1,500 managers in Moscow.
Despite official statistics on a labor shortage, the situation in the Russian labor market is rapidly deteriorating. The Russian economy is entering a phase of systemic cuts, which will inevitably hit consumer activity and public welfare, especially in the regions.
Crisis in Russia’s economy
Russia’s economy essentially stalled in the second quarter of 2025. A state of technical stagnation is observed. Economic stagnation is a situation where economic growth is virtually absent or very weak over an extended period.
According to the IMF’s July 2025 forecast, Russia’s GDP growth this year will slow to 0.9% and to 1.0% in 2026. In 2024, growth was at 4.1%.
Recent estimates indicate that Russia spends half of its budget on the war against Ukraine.
