From railways and automotive plants to metals, coal and cement makers, some of Russia’s largest industrial firms are reducing labour costs by placing employees on furlough or trimming working days. Reuters reports that non‑military sectors of the economy have contracted by 5.4 % since January【85808353192082†L204-L212】. Companies are taking measures to keep workers on the payroll while domestic demand stalls and exports dry up amid sanctions.

Industry sources identified six mining and transport giants that have moved to shorter working weeks to cut wage bills【85808353192082†L220-L226】. Cemros, Russia’s biggest cement producer, has shifted its 13,000 staff to a four‑day week until year‑end due to a sharp downturn in construction and a surge in cheaper imports from China, Iran and Belarus【85808353192082†L224-L237】. Russian Railways, with around 700,000 employees, asked administrative staff to take three extra days off per month, while van maker GAZ and truck builder Kamaz moved to four‑day weeks in August【85808353192082†L278-L293】. Carmaker Avtovaz started a four‑day week on September 29 and diamond miner Alrosa cut payrolls by 10 %【85808353192082†L286-L302】.

Analysts say the furloughs underscore the strain that high interest rates, a strong rouble, weak domestic demand and cheap imports are placing on Russia’s economy【85808353192082†L274-L276】. The Centre for Macroeconomic Analysis and Short‑term Forecasting forecasts GDP growth slowing to 0.7 %–1.0 % this year【85808353192082†L249-L253】, while wage arrears have tripled from a year earlier【85808353192082†L314-L318】. In Kuzbass, the heart of Russia’s coal industry, hundreds of jobs have been lost as a plywood mill shut down and coal exports declined【85808353192082†L298-L312】. Although unemployment remains officially low, the furloughs highlight how economic pressure from the war is forcing companies and the government to provide support to heavy industry workers【85808353192082†L324-L337】.