Main points
- The practice of “silent layoffs” is spreading in Russia, where employees are forced to leave on their own due to unfavorable working conditions.
- This approach allows companies to avoid compensation costs in formal layoffs, while reducing legal risks and reputational damage.
Companies in Russia have begun to lay off workers en masse / Collage by Channel 24, photo by Getty Images
A new practice of staff reduction is gaining momentum in Russia – so-called “silent layoffs.” These are situations where employees are not officially fired, but rather conditions are created under which they are forced to leave on their own.
Why are workers being laid off en masse in Russia?
In fact, this allows companies to avoid the costs and legal procedures associated with classic layoffs, writes SZRU.
The scheme looks simple: the employer does not dismiss the employee directly, but gradually “puts pressure” on the employee. The most common methods are:
- sharp increase in plans and KPIs
- increase in reporting volume
- constant checks and monitoring
- reduction or complete cancellation of bonuses
As a result, the work becomes financially and psychologically unbearable.
Why is this good for business?
The main reason is money. In the event of an official layoff, the company is obliged to pay compensation, which can amount to several average salaries. In the case of a “quiet dismissal”, this can be avoided.
In addition, businesses reduce legal risks, reputational damage, and attention from regulatory authorities.
According to estimates by labor market experts, about 25% of Russian companies plan to reduce staff in 2026. However, only a small part does this openly. The majority choose hidden mechanisms.
What does this mean?
“Silent layoffs” are a typical tool of crisis economies. Businesses do not have the resources for classic layoffs, so they are looking for alternatives.
This indicates:
- Deterioration of the financial condition of companies
- Growing pressure on employers
- Structural problems in the economy
This is a problem because workers lose legal benefits, labor market instability increases, social protection levels decrease, and a toxic work environment is created.
Note: “Silent layoffs” are becoming the new norm in economic downturns. They allow businesses to survive, but leave employees the most vulnerable to this crisis.
What is happening in the Russian labor market?
Most companies in Russia have effectively frozen hiring additional employees until the end of the year, according to a report by the Central Bank, The Moscow Times writes.
According to the regulator's surveys, 64% of companies no longer plan to change their staff numbers this year due to low demand for products. The main reason for the easing of the labor shortage was the cooling of economic demand.
The largest share of such companies is in the transportation and storage sector. The smallest share is in industry, mining, and processing.
In March of this year, the share of companies reporting a shortage of workers fell to 51%, the lowest in the last two years. Employers are moving away from mass hiring practices and towards more targeted HR decisions,
– says Daryna Medvednikova, a research associate at the center.
At the same time, companies are trying to avoid direct layoffs and are moving people to part-time work. Last year, the number of part-time workers in Russia increased by a record high – in the fourth quarter, their number reached 1.6 million people.
How do Russians react to changes?
Russian small and medium-sized businesses found themselves in an extremely difficult situation in 2026. According to surveys, 95% of entrepreneurs report a worsening situation, and about three-quarters talk about serious problems at work, the intelligence agency writes.
Financial difficulties are already directly hitting employees. In January 2026 alone, salary arrears reached 1.86 billion rubles, with more than 40% of this amount formed in just one month.
- One of the most high-profile examples was the situation with the Novolex construction holding in Siberia.
The company owes its employees about 2.5 billion rubles. Alfa-Bank is demanding 1 billion rubles from the holding, nine bankruptcy applications have been filed with arbitration courts, and some of the heavy equipment has already been seized. The net profit of most of the holding's structures has fallen by 70-90%.
- In Vorkuta, employees of several companies are also preparing for strikes due to non-payment of salaries.
Employees of Severputstroy and Severkomplektstroy are rioting because February payments have not been received at all. One strike has already taken place. Employees of the municipal Specialized Road Administration have sought a salary increase from 8 to 30,000 rubles through the court, but they have not received the money – most of them have simply been fired.
What is the state of Russia's economy?
Economist Ivan Us told Channel 24 said that even the top leadership of Russia now recognizes its economic problems. In particular, the country's Minister of Economic Development, Maxim Reshetnikov, says bluntly that the country has already exhausted all possible resources. And this is happening against the backdrop of a strong ruble, high interest rates, a shortage of labor resources, and budget constraints.
Thus, the officially announced 1.5% drop in GDP in the first quarter of 2026 does not correspond to reality. This percentage is much higher, notes economist Us.
Ivan Us,
Chief Consultant, Center for Foreign Policy Studies, National Institute for Strategic Studies
To understand the real state of affairs in Russia, it is worth listening to their economic forums, such as the St. Petersburg or Moscow economic forums. They are spoken by people who, in principle, work in the economy. And if people really have problems, they will not say that everything is great.
So, at one of such forums, Vladimir Baglaev, General Director of the Cherepovets Foundry and Mechanical Plant, said that his plant is connected to Russian enterprises in 9 industries.
And if in previous crises, for example, 7 industries had problems, and 2 industries stayed afloat, now all 9 industries are not showing growth at all.
- Metal production in Russia, he said, has decreased by approximately 60%, but somehow production is still growing according to official data.
- Leading Russian factories, such as KAMAZ, are saying that Russia should now switch to a 3-day work week. This means that enterprises will only operate at 60% of their 100% capacity.
- In addition, Baglayev says that the production of dump trucks – that is, products produced only by Russian companies – has already fallen 20 times, to 95%.
What problems does Russian business have?
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Tax hikes in Russia have left 50% of companies operating at a loss, with the Chamber of Commerce and Industry putting the figure at 65%. Changes in tax legislation, including an increase in VAT from 20% to 22% and a reduction in the income threshold for the simplified system, have had a negative impact on business, reducing tax revenues by 16% in the first quarter.
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The financial performance of Russian companies deteriorated sharply in early 2026, with a combined net profit of 3.4 trillion rubles, down 33.1% from the previous year. Revenues from small businesses and the self-employed fell to approximately $7.5 billion in the first quarter of 2026.