Russian strikes on Ukrainian companies are leading to layoffs, bonus freezes and wage increases being postponed. The pressure on businesses could shift the labor market in favor of employers and slow wage growth, warns Natalia Kolesnichenko, senior economist at the Center for Economic Strategy.
According to her, the layoffs could reduce state budget revenues while the cost of unemployment benefits increases. “Business resilience is not unlimited”, says Kolesnichenko. According to her, the Ukrainian economy has been gradually recovering since 2023, but the resources that support this process remain fragile.
Fozzy Group lays off part of its office teams
Fozzy Group, owner of the Silpo and Fora supermarket chains, announces layoffs in part of its office teams from November 1. The decision comes after damage to more than 20 sites between August 1 and September 25. Distribution centers, supermarkets and production facilities are affected.
The company indicates that it has lost part of its infrastructure and inventory, which is making work more difficult and increasing costs. Before the layoffs, Fozzy Group froze bonuses for the third and fourth quarters, postponed a planned salary review for office employees and stopped hiring for some administrative positions.
In August alone, 10 of the group's distribution centers were affected. Despite the changes in the offices, Fozzy Group continues to look for employees for supermarkets, warehouses and production. Thus, the layoffs are mainly aimed at administrative teams, while operational positions remain necessary to maintain the business.
The blow to logistics also affects Rozetka
Online retailer Rozetka is also optimizing its staff after the destruction of an automated warehouse complex in Brovary, Kiev region. The facility processed about 100,000 orders per day, and its restoration is not possible.
The consequences of the attacks extend beyond trade. The pressure covers logistics, the food industry, pharmacy, ceramics and home textile production. If the trend continues, employers will gain a stronger position in negotiating wages, and the state will be faced with both lower budget revenues and higher costs for supporting the unemployed.
Sources: money.bg, biz.nv.ua