russia’s Industry Is Preparing for Prolonged Stagnation:  Reductions in Working Hours Are Becoming Systemic

In 2025, more and more russian industrial enterprises are switching to a reduced working week. This practice has become systemic in the automotive, metallurgical, machine-building, and construction industries.

The reasons for this are the slowdown in economic activity, decrease in  domestic demand, and restrictions caused by Western sanctions.

Among the companies that have introduced a four-day week – the largest players in the industrial sector: AvtoVAZ (Tolyatti), KAMAZ (Naberezhnye Chelny), Gorky Automobile Plant, and Likinsky Bus Plant. Sales of “Lada” cars have fallen by 25 % since the beginning of the year, while KAMAZ and LiAZ have reduced their sales by 60 %. In the metallurgical industry, a similar step was taken by the Chelyabinsk Electrometallurgical Plant, which experienced a decline in domestic consumption. The construction sector is responding in a similar way: Cemros has switched its employees to a four-day schedule due to weak demand and low product competitiveness of the production.

Machine-building enterprises are also reducing working hours: Yaroslavl Motor Plant has introduced a shortened week until the end of the year, and Uralvagonzavod has done so for civilian production since December, focusing resources on defense orders.

Trade unions consider this step a temporary compromise that allows avoiding mass layoffs. However, employees report a decrease in income and no guarantees regarding the timing of a return to full employment.

The reduction in the working week indicates a deepening crisis in industry and the enterprises’ gradual adaptation to a shrinking market. If demand remains low, this practice may spread to other sectors, from agriculture to energy and financial services.