Layoffs of IT specialists in Russia have accelerated as 2024 draws to a close. According to reporting by The Bell in its subscribers-exclusive newsletter, the cutbacks have hit both tech firms and the IT divisions of companies in other industries. However, Russia’s wartime political posture has made it difficult to speak openly about economic setbacks, and businesses have labored to conceal or deny mounting troubles with IT personnel. Meduza summarizes The Bell’s report.
Multiple IT recruitment specialists told The Bell that businesses have tried to conceal information about the layoffs or denied outright that cutbacks are happening at all. One source explained that layoffs have been “quietly underway” all year, but the rate intensified in recent months. “No one is ready to make this public. They say, ‘Sure, we let some people go, sure, it was the whole department, sure, it was the entire project, but it’s not layoffs, come on,’” the source said. Another IT recruiter told The Bell that layoffs have become routine. “Entire teams are coming to us,” he explained.
The Bell reported layoffs at the social media conglomerate VK and the telecom giant MTS, though both companies deny it. The Bell’s sources also mentioned cutbacks to IT workers at the development group Samolet. (Samolet says it merely “streamlined” its IT department to eliminate redundant functions when creating a new division called Samolet Technologies.) Sberbank is also rolling back investments in testing and evaluation, reportedly by cutting contracts with outsourced IT product developers.
Additionally, the founder and former CEO of MyOffice (which designs office software intended to replace Microsoft Office products in Russia) revealed earlier this month that executives had laid off its entire senior management (who were appointed only two years earlier when Kaspersky Lab gained control over the company). The IT Workers Union has reported cutbacks at other firms, as well.
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“The economy is screwed,” the source said. “IT specialists were supposedly in high demand, there was a labor shortage, and so on. But the market has no money for growth, and marketing instruments have failed. Sure, companies need marketers and IT specialists, but there’s no money [to pay them]. However, they’re hiding all this because, in Russia, the economy can’t possibly be screwed.”
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Any possibility this lasts past Jan 20th? What will happen when Trump lifts all the US sanctions? Will the other ones still be enough to make an impact?
The Russian economy is going to face a very bad long-term future, even if the war ended today and all sanctions were lifted.
he can only undo certain things on his own. There is a lot of other groups and countries that have a say on the sanctions.