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Russia's Answer to Microsoft Office Plans Massive Layoffs After Billions in Losses

Russian software developer MyOffice, branded as a domestic replacement for Microsoft Office, is set to undergo significant layoffs after reporting multibillion-ruble losses. The company, which employs over 1,000 people, has faced serious financial difficulties, with net losses exceeding 4 billion rubles (around $50 million) in the past year, marking a tripling from the previous year.

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Russia's Answer to Microsoft Office Plans Massive Layoffs After Billions in Losses

On May 25, 2026, it was announced that New Cloud Technologies, the developer behind the MyOffice software suite, is preparing to implement large-scale layoffs. Internal notices received by employees indicated that entire departments might be eliminated, with technical support teams expected to remain intact.

The financial strain on MyOffice is severe, with declining business volumes despite considerable efforts made in 2025 to stabilize operations. The CEO addressed these challenges, emphasizing the need for "substantial changes" to ensure the company's sustainability.

Financial records show that MyOffice reported profit in only one of the last five years, specifically in 2022, with earnings reaching 386.5 million rubles. In stark contrast, the revenue declined by approximately 50% in 2025 to around 1 billion rubles (approximately $12.7 million), while debt obligations to its majority shareholder increased substantially.

Furthermore, some former employees have claimed that management attempted to pressure staff into resigning without compensation. There have been reports of intimidating practices towards workers for minor infractions, leading to the organization of a labor union to challenge these unlawful dismissals.

MyOffice was established in 2014 as part of Russia’s broader initiative to replace Western technologies amidst growing sanctions and technological isolation. The office suite gained traction among various Russian state institutions, including the State Duma.

Currently, Kaspersky Lab controls nearly 69% of New Cloud Technologies, and Dmitry Komissarov holds a 5% stake. As Russia faces ongoing economic challenges, including rising tax burdens and limited credit access, large-scale layoffs may become a common response across multiple sectors in the future.

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