“russia’s Railways” Is Cutting Staff and Investments Amid the Declining Freight Volumes

OJSC “RZhD” is preparing to cut management staff and freeze hiring in an effort to improve efficiency amid the declining freight volumes and a deteriorating economic situation. First of all, the company will eliminate existing vacancies and limit the hiring of new employees.

Freight volumes have been declining for the fourth consecutive year: by 3.9 % in 2022, by 0.2 % – in 2023, by 4.1 % – in 2024, and by 6.7 % – in the first nine months of 2025. The largest declines are recorded in the transportation of grain (-26.6 %), cement (-13.8 %), and construction materials (-13.1 %).

To avoid mass layoffs, “russia’s Railways” introduced mandatory unpaid leave for managers in August. Employees of the Central Office must take three additional days off each month at their own expense. The company, which employs about 700,000 people, is trying to reduce costs without directly cutting staff.

Financial indicators have deteriorated sharply: net profit for the first half of 2025 decreased by 95 % to $33.75 million, compared to $173.8 million in 2024 and $1.48 billion in 2023. The investment program was cut by 40 % – from $16.3 billion to $10.7 billion, which affected infrastructure modernization, rolling stock renewal, and projects aimed at increasing raw material exports to China.

The company’s debt currently stands at around 2.77 trillion rubles. In 2026, “russia’s Railways” is expected to face a working capital shortfall for servicing loans and financing eastern projects, including the expansion of the Baikal-Amur Mainline and integration with Chinese logistics routes.