PJSC Russian Railways (RZD) is preparing to cut managerial staff and freeze hiring in an effort to increase efficiency amid declining freight volumes and a worsening economic situation. The company plans to eliminate existing vacancies and limit the recruitment of new employees.
Freight volumes have been falling for the fourth consecutive year: by 3.9% in 2022, 0.2% in 2023, 4.1% in 2024, and 6.7% over the first nine months of 2025. The largest declines are seen in grain transportation (–26.6%), cement (–13.8%), and building materials (–13.1%).
To avoid mass layoffs, RZD introduced forced unpaid leave for managers in August. Central office employees are required to take three additional days off per month without pay. The company, which employs around 700,000 people, is trying to reduce costs without directly cutting staff.
Financial results have sharply deteriorated: net profit for the first half of 2025 fell 95% to $33.75 million, compared to $173.8 million in 2024 and $1.48 billion in 2023. The investment program has been reduced by 40%, from $16.3 billion to $10.7 billion, affecting infrastructure modernization, rolling stock upgrades, and projects aimed at increasing raw material exports to China.
The company’s debt currently stands at approximately 2.77 trillion rubles. In 2026, RZD is expected to face a shortage of working capital to service loans and fund eastern projects, including the expansion of the Baikal-Amur Mainline and integration with Chinese logistics routes
