The Russian government is set to resume large-scale layoffs of public sector workers next year, following a pause due to the COVID-19 pandemic and the invasion of Ukraine, as reported by the Kommersant business newspaper.
Reforms to streamline state services began in 2019, initially leading to a 10% reduction in federal employees as part of a shift toward digitalization in the public sector.
Last month, President Vladimir Putin signed a decree mandating a 10% staff reduction in the territorial branches of federal agencies by July 1, 2025.
These cuts are aimed at reallocating funds to boost wages for remaining employees.
Currently, around 400,000 people work in Russia’s federal territorial divisions, representing about 0.5% of the country’s workforce. Some agencies may meet the reduction goal by cutting vacant positions, according to Kommersant.
The average monthly salary for these employees is 60,300 rubles ($614), which is 45% lower than federal agency salaries. Following the cuts, wages could increase to as much as 80,000 rubles per month, depending on the number of affected employees.
The planned layoffs will not affect personnel working in the Russian-controlled administrations in four partially occupied regions of Ukraine that Moscow claims to have annexed in 2022.
