Fozzy Group Begins Office Staff Reductions Due to War-Related Losses
Starting November 1, 2023, Fozzy Group will reduce its office workforce as a response to escalating financial losses caused by Russian attacks. The layoffs will impact teams within the holding company, Silpo retail chain, and logistics departments. This decision follows increased damage inflicted by Russian shelling, which resulted in the destruction or impairment of more than 20 company facilities between August 1 and September 25.
Damage to Facilities and Cost-Cutting Measures
Among the affected sites are distribution centers, supermarkets, and production facilities. In August 2023 alone, 10 Fozzy Group distribution centers—responsible for supplying goods to Silpo, Thrash!, Fora, and Fozzy stores—sustained damage. Despite these challenges, as of early September, Fozzy Group Logistics and Silpo reported 1,614 open vacancies across supermarkets, logistics, and manufacturing, with 940 roles specifically in logistics.
To manage expenses, the company has halted several employee benefits and initiatives, including:
- Bonuses for the third and fourth quarters,
- Autumn salary increases for office staff,
- The voluntary medical insurance program.
Recruitment for some office positions has also been paused. Fozzy Group is owned by Volodymyr Kostelman, Oleh Sotnikov, and Roman Chyhir.
The Silpo network operates 307 supermarkets across 60 Ukrainian cities, along with four Le Silpo delicatessen stores. Thrash! runs over 200 markets nationwide, while Fozzy manages eight hypermarkets. Fora comprises more than 340 stores in Kyiv and the surrounding region. In June 2023, Fora acquired the Badioriy chain, adding roughly 180 stores in Kyiv and Kyiv Oblast under its management.
Previously, similar workforce reductions took place within the Maudau marketplace and the IT teams of Temabit and E-commerce & Ecosystem. Amid ongoing challenges, Fozzy Group continues to recruit for operational roles and is actively restoring damaged infrastructure, reorganizing its logistics to ensure steady operations during wartime conditions.
The workforce cuts at Fozzy Group highlight the severe economic pressures Ukrainian businesses face amid the ongoing conflict. Infrastructure losses and rising restoration costs have strained financial stability. Nevertheless, the company’s continued hiring for operational positions reflects its efforts to adapt and preserve critical jobs despite the difficult environment.