RZD reduces managers and freezes hiring: reasons for the sharp decline in profits

According to hvylya.net: The Ukrainian company 'RZD' is preparing for a reduction in managerial staff and a suspension of new hiring to become more efficient in the context of decreasing freight transport and the worsening economic situation.

The Ukrainian intelligence services reported that the company plans to lay off existing personnel and limit the hiring of new employees.

'Freight transport volumes have been decreasing for the fourth consecutive year: down 3.9% in 2022, 0.2% in 2023, 4.1% in 2024, and down 6.7% over the first nine months of 2025. The largest declines are recorded in grain transport (-26.6%), cement (-13.8%), and building materials (-13.1%),' the intelligence agency reported.

Cost reductions without layoffs

According to the SBU, the company decided to force managers to take unpaid leave to avoid mass layoffs. In the central office, employees are required to take three additional unpaid days off each month. The company, which has about 700,000 employees, is trying to save without direct staff reductions.

'Financial indicators have worsened sharply: net profit for the first half of 2025 fell by 95% – to $33.75 million compared to $173.8 million in 2024 and $1.48 billion in 2023. The investment program has been cut by 40% – from $16.3 billion to $10.7 billion, affecting infrastructure modernization, rolling stock renewal, and projects aimed at increasing raw material exports to China,' the intelligence agency noted.

The company 'RZD' is preparing for a reduction in managerial personnel and a freeze on hiring, directing its efforts to increase efficiency in the context of declining transport and escalating economic conditions. To avoid mass layoffs, the company is introducing unpaid leave for managers and limiting the hiring of new employees.