Russian Railways Cuts Managers: Company Adapts to Falling Freight Volumes

CEO Belozerov Instructed to Prepare Proposals for Staff Reductions

Russian Railways plans to reduce management personnel and limit the hiring of new employees, a company representative announced on October 18, 2025. CEO Oleg Belozerov instructed deputies and heads of structural divisions to prepare proposals by November 1 for staff reductions, changes in structure, and work schedules.

According to the Russian Railways representative, the measures are aimed at improving efficiency in the face of declining workloads and a difficult economic situation. In August, employees of the central apparatus and road administrations already took two days of unpaid leave per month. Now, a full-fledged reduction in management staff is planned.

Russian Railways' transportation volumes have been decreasing in recent years: by 3.9% in 2022, 0.2% in 2023, and 4.1% in 2024. For January–September 2025, freight traffic decreased by 6.7% year-on-year. Reductions affected almost all categories of goods: coal — by 2.3%, coke — by 16.2%, oil and petroleum products — by 5.3%, cement — by 13.8%, building materials — by 13.1%, and grain — by a record 26.6%.

To reduce costs, Russian Railways reduced its investment program by almost 40%, suspending major construction projects, including the expansion of the BAM and Trans-Siberian railways for transporting raw materials to China. The total investment volume decreased from 1.3 trillion rubles to 890 billion, then by another 32.5 billion rubles. The reduction affected the renewal of railway tracks and the purchase of locomotives and wagons. The company's net profit in 2024 fell ninefold — to 13.9 billion rubles, and in the first half of 2025 — 23 times, to 2.7 billion rubles.

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Sources
RBK

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