Russian Railways to cut 15% of head office staff in 2026 - CEO

MOSCOW. March 18 (Interfax) - Russian Railways (RZD) plans to downsize its head office by 15% in 2026, company CEO Oleg Belozerov said in an interview with Interfax.

"We did an analysis of the structure, functions, and, accordingly, we'll reduce the number of staff positions. This is foremost administrative and management staff, including the management of our branches. We'll cut about 6,000 people," Belozerov said.

He said the financial result of the company's program to boost labor productivity totalled almost 300 billion rubles in 2019-2025 and the figure is expected to be 74 billion rubles in 2026.

"We're moving in all directions: technology, reduction of costs, expenses, electricity, diesel fuel, traffic with greater reliability and fewer repairs. This is also the transformation of the organizational structure, its optimization," Belozerov said.

It was reported last fall that RZD planned to cut administrative staff. Managers ranging from deputy CEOs to division heads were supposed to submit their proposals for staff cuts by November 1, according to a telegram signed by the CEO that was sent to those responsible for executing the instructions.

RZD confirmed to Interfax that the document was genuine and said that the "optimization of administrative staff numbers is aimed at increasing the company's efficiency amid the decrease in work volumes and the difficult economic situation."

The company said at the time that it would foremost cut existing vacancies and restrict new hiring.