No Fuss, No Severance Pay: a Wave of “Quiet” Layoffs Has Begun in russia

A new trend is emerging in russia’s labor market: companies are switching from traditional layoffs to so-called “quiet” ones. This practice involves creating the harshest possible working conditions for employees, effectively forcing them to resign voluntarily. As a result, russians lose their right to statutory compensation, including severance pay amounting to up to three months’ average salary.

Key indicators of a “quiet” layoff include a sharp increase in sales targets, an increase in reporting requirements, tighter controls and inspections, as well as the reduction or complete elimination of bonuses. All of this creates both psychological and financial pressure on employees.

This strategy allows employers to minimize legal risks and avoid the costs associated with formal layoffs. According to labor market experts, about 25% of russian companies plan to reduce their workforce in 2026. However, only a small fraction of them resort to open mass layoffs, while the majority opt for covert methods of workforce optimization.

This business behavior confirms the reality of a general deterioration in russia’s economic situation. The rising tax burden, increased insurance contributions, declining purchasing power of the population, and other factors have put entrepreneurs in a situation where they are forced to balance between business survival and job preservation. At the same time, employees find themselves in an even more vulnerable position, as the main burden of these changes falls on them.