Russia is facing a protracted economic crisis

A new term has appeared in official Russian discourse— "economic slowdown". Behind this euphemism lies a sharp rise in layoffs, the closure of retail chains, and a deep budget deficit. According to Rosstat data, in the fourth quarter of 2025 alone, the number of layoffs jumped by 60%, and this trend continues into 2026.

We have summarized the key facts about what is happening in the Russian labor market and industry.

What's going on with the job?

Companies across a wide range of sectors—from the public sector to IT—have begun large-scale layoffs:

Transportation and the Public Sector
Russian Railways plans to reduce by 15% the central administration (about 6,000 people), and the Moscow City Hall—as well as 15% its own staff.

Retail and Media
Маркетплейс Lamoda в 2025 году уже уволил более тысячи сотрудников (10% штата), а издательство «Просвещение» готовится сократить не менее 20% staff by the summer of 2026.

IT sector
Mass layoffs have affected "MoyOffice," a company that develops alternatives to Microsoft software.

Industry
Companies are switching to reduced work schedules. For example, the excavator manufacturer “IZ-KARTEX” is implementing a three-day workweek, and the former IKEA factory in Tikhvin has announced a production halt.

Why are stores closing?

For the first time in the past 25 years, Russia has seen an overall decline in the number of retail outlets. Major fashion retailers are closing their stores en masse.

So, Gloria Jeans plans to close up to 150 stores in 2026. Concept Group (the Acoola and Concept Club brands) has already closed nearly half of its locations—133 out of 284. Zolla and O’stin There are also reports of widespread closures amid a sharp drop in profits.

The situation in the regions is even more difficult: in the Kemerovo Region, eight coal mines are shutting down, and another 17 have suspended operations.

What do the experts and statistics say?

At the Moscow Economic Forum (MEF), the forecasts sound alarming. Economists are warning of “protracted stagnation” and apathy in many sectors. Robert Nigmatulin, an academician of the Russian Academy of Sciences, stated that the country is heading toward a “double-digit economic decline” and a drop in consumption of more than 10%.

Key Economic Indicators

• Revenue: Oil and gas revenues plummeted by 47% compared to last year.
• Deficit: In the first two months of the year, the budget deficit amounted to 3.5 trillion rubles — это 91% от всего годового плана. Власти вынуждены покрывать дыру, распродавая золото и валюту из ФНБ.
• Prices and Demand: Российское ПО подорожало на 10–20%, продажи жилья в Московском регионе упали на 20%, и даже производство алкоголя сократилось почти на 5% из-за падения покупательной способности.

Against this backdrop, Dmitry Medvedev, Deputy Chairman of the Security Council, reported that more than 80,000 people have enlisted in contract military service since the beginning of 2026. According to participants at the MEF, a paradigm shift in economic policy—which is currently focused solely on “accumulating money” and fighting inflation—is necessary to remedy the situation.

Oil prices plummeted amid the truce between the U.S. and Iran. The Russian stock market opened lower.

On the night of April 8, U.S. President Donald Trump announced that the United States would suspend its airstrikes against Iran for two weeks, provided that the Strait of Hormuz was reopened immediately. Iranian authorities confirmed that they agreed to the ceasefire.

Following Donald Trump's announcement of a ceasefire between the U.S. and Iran, the price of Brent crude fell below $100 per barrel.

Shares of Russian oil and gas companies opened lower on the morning of April 8 amid a truce between the U.S. and Iran, according to RBC and Interfax.

Leading the declines are shares of Rosneft (–7.2%), Tatneft (–6.6%), Lukoil (–4.3%), Novatek (—4%); shares of Sovcomflot (—3.1%), Gazprom (—2.4%), Rusal (—1.7%), and Surgutneftegaz (—1.6%). As of 07:01 Moscow time, the Moscow Exchange Index stood at 2,751.98 points (—1.6%).