US EditionRussia's industrial titans furlough workers as its war economy stalls
Several Russian industrial giants in mining and transport sectors reduced workweeks or cut staff amid falling demand and exports, with over 300 jobs lost, sources said.
- On August 28, Russia's Financial Stability Commission discussed interventions as major industrial companies across sectors like mining and transport reduced staff or cut working weeks amid a slowing war economy.
- Years of expert warnings about Moscow's economic vulnerability and overdependence on the Ukraine conflict set the stage for these labor contractions, as renewed Western sanctions and flagging domestic demand tightened pressure.
- Industrial giants such as Cemros, Russia’s biggest cement maker, and Avtovaz, the largest carmaker, moved to four-day workweeks to preserve jobs, while coal exports fell sharply and several factories shuttered.
- More than 19,000 coal workers lost jobs in the first half of 2025, wage arrears reached 1.64 billion rubles at August’s end—3.3 times last year—and Cemros's spokesperson called the cutbacks 'a necessary anti-crisis measure.'
- With GDP growth forecast to slow to as little as 0.7% this year and inflation at 6.8%, officials consider bankruptcy moratoriums as Russia’s industrial base adjusts to enduring economic headwinds.
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7 Articles
Russian industrial giants furlough workers as economy shows cracks
Russia’s war economy is facing a new set of headwinds as the conflict in Ukraine drags on. Several Russian industrial giants in the transportation and mining sectors are furloughing or cutting staff as domestic demand and exports slip. The World Bank downgraded the country’s growth outlook this week, saying Russia is heading toward stagnation rather than a “managed slowdown.” Investors and ordinary Russians are increasingly pessimistic. Experts …
Russia's industrial titans furlough workers as its war economy stalls
From railways and automobiles to metals, coal, diamonds and cement, some of Russia's biggest industrial companies are putting employees on furlough or cutting staff as the war economy slows, domestic demand stalls and exports dry up.
Railroads, automotive, metals, coal, diamonds, and cement—Russian majors across all these industries are furloughing workers or reducing their workforces. The reason? Russia's war economy is slowing, domestic demand is falling, and exports are dwindling.
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