Mass layoffs have begun at Ukrzaliznytsia: who is first to be affected

Ukrzaliznytsia has started optimizing its workforce as part of the 'Iron Efficiency' program. According to the company's CEO Oleksandr Peretskyi, it is planned to reduce at least 25% of administrative and managerial staff by 2025, specifically more than 500 jobs.

This program began earlier this year, and Ukrzaliznytsia hopes to reduce personnel costs, which currently account for more than half of all company expenses. Last year, over 9 thousand employees left the company, making Ukrzaliznytsia a leader in staff reduction among Ukrainian enterprises. The shortage of workers, particularly conductors, engineers, and repairmen, stands at 20%.

'The optimization started with administrative divisions, which have become less effective due to digitalization. Management plans to review intermediate management levels and managerial functions,' emphasized Peretskyi.

The need for optimization is due to high personnel costs, which increased by almost 14% last year and exceeded the growth rate of the company's revenues.

Ukrzaliznytsia has begun the process of optimizing its workforce, planning to reduce administrative and managerial staff by 25% by 2025. Last year, over 9 thousand employees left the company, indicating the need to reduce personnel costs in light of revenue growth. Despite the shortage of workers in key sectors, Ukrzaliznytsia plans to carefully consider ways to optimize and improve management efficiency.