Increase in Corporate Cost-Cutting Plans Reported by RSPP
In a recent survey conducted by the Russian Union of Industrialists and Entrepreneurs (RSPP), it was revealed that 74% of companies in Russia are planning to reduce costs in 2025. This trend is driven by a combination of factors, including economic uncertainty, inflationary pressures, sanctions impacting costs and supply chains, and the need to maintain competitiveness amid geopolitical tensions.
The RSPP report, published in May 2025, highlights several key issues that are motivating companies to optimize expenses. Logistics issues were noted by 12.8% of companies, while 38.4% reported a decrease in revenue. The current trend is also influenced by expensive loans due to high key interest rates and a simultaneous decrease in demand due to reduced consumer lending.
Interestingly, only 14% of survey participants mentioned an increase in prices for products on the domestic market as a main problem, compared to 22% in a previous reporting period. This suggests that companies are finding ways to absorb the cost increases rather than passing them on to consumers.
The survey also revealed that 30% of companies plan to optimize expenses on raw materials and components, while 55% plan to save on consumed services such as consulting. In a positive development, the Central Bank reduced the key rate for the first time since 2022 - by 1 p.p., to 20%.
However, the regulator did not rule out the possibility of raising the key rate again if inflation stops decreasing and starts to rise. A lack of working capital is a problem for 30% of companies, and organizations also mentioned currency instability and the lack of access to credit as issues.
In terms of labor costs, 18% of companies are reducing labor costs, while 93% are optimizing administrative expenses. Businesses are likely to focus on revising the financial terms of existing employees and may refrain from wage indexation, bonuses, or increasing workload.
The RSPP report also states that the situation with demand for goods and services deteriorated at the beginning of the year. Mass layoffs are expected in the most troubled sectors, such as the coal industry. However, Boris Kopaikin, chief economist at the Institute of Economic Growth named after P.A. Stolypin, stated that companies will avoid mass layoffs due to the current labor shortage.
Finally, 21% of enterprises plan to reduce expenses on charitable and social programs. Despite these cost-cutting measures, it is clear that companies in Russia are facing significant challenges in 2025, and the RSPP's survey provides valuable insights into the strategies they are using to navigate these difficulties.
Companies in Russia are optimizing expenses to maintain competitiveness, with 30% focusing on reducing costs on raw materials and components, and 55% on saving on consumed services like consulting. In the finance sector, businesses are likely to review the financial terms of employees, potentially refraining from wage indexation, bonuses, or increasing workload. Additionally, the RSPP report indicates that 21% of enterprises aim to reduce expenses on charitable and social programs in response to the economic challenges faced in 2025.
