Russia’s economy nears meltdown as companies launch massive layoffs

Russia's economy is teetering on the edge as industrial production declines and companies initiate major layoffs.

The latest PMI data indicates a contraction in both the services and industrial sectors, with the manufacturing index dropping from 53.1 to 50.2 in just one month.

Analysts warn that historically high interest rates of 21% are exacerbating Russia’s economic troubles, as the country pours massive resources into sustaining its war efforts.

Olga Petrova, managing partner at VIZIVI Consult, told independent Russian news outlet The Bell: "Several companies are quietly discussing cutting up to 40-50% of contracted staff, including IT specialists."

No sector is spared—not even the military industry, where production targets are being missed and output is slowing down. Even gas giant Gazprom and mobile operator VK have begun layoffs.

Anastasia Ovcharenko, a partner at Kontakt InterSearch Russia, explained: "It's likely that IT specialists working on investment projects with uncertain prospects will be let go. These projects will be shut down and resources reallocated, but there won’t be a massive wave of tech layoffs."

(QG - Source : The Daily Express - Picture : © Unsplash)