Public Sector Layoffs

Russia’s Government Layoffs Fuel Ukraine War Concerns

Following a pause due to the pandemic and the invasion of Ukraine, Russia plans to resume major public sector layoffs in 2024. This initiative, aiming to cut 10% of staff in territorial branches of federal agencies by 2025, seeks to free up funds to increase salaries for remaining employees. The goal is to reduce the workforce in these branches by approximately 40,000 people, or 0.5% of the country’s overall workforce. While some agencies may achieve this through unfilled positions, the move could result in higher salaries for those remaining, reaching up to 80,000 rubles per month. Notably, employees in Russia-installed administrations in occupied Ukrainian territories will be exempt from these layoffs.

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