Russian Railways Faces Deep Cuts and Layoffs Amid Financial Crisis
moscow, Russia – Russian Railways (RZD), the state-owned rail monopoly, is bracing for a significant restructuring plan involving considerable budget cuts, unpaid leave for employees, and the beginning of staff layoffs in October, according to reports from The Moscow Times. The measures are a response to a collapse in freight transport and mounting budgetary pressures.
The austerity drive will see RZD’s investment slashed by a third. Workers will be required to take two unpaid leave days each month, and the company will initiate layoffs starting this month. These actions come as the Russian government increasingly targets autonomous media, recently designating The Moscow Times as an “undesirable” association and labeling it a “foreign agent,” actions the publication states are attempts to silence independent journalism.
RZD’s financial woes stem from a sharp decline in freight volumes, a critical revenue stream for the company. The situation is further exacerbated by broader economic challenges facing russia, including the impact of international sanctions and shifting trade patterns. the cuts and layoffs represent a significant blow to the Russian transportation sector and raise concerns about the future stability of the country’s vast rail network, which is vital for both passenger and cargo transport across the country. The company is seeking to navigate a challenging financial landscape while maintaining essential services.
