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Russia’s Answer to Microsoft Office Plans Massive Layoffs After Billions in Losses
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Russian software developer MyOffice, which was promoted as a domestic replacement for Microsoft Office, is preparing large-scale staff cuts after reporting multibillion-ruble losses.
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According to Vedomosti on May 25, employees at the company behind the MyOffice software suite—New Cloud Technologies—received internal notices in mid-May warning about upcoming layoffs. Sources cited by the outlet said entire departments could be eliminated, with technical support teams expected to remain among the few unaffected divisions.
The reports follow earlier internal warnings from MyOffice management that the company was facing “serious financial difficulties” despite “significant efforts” during 2025.
“The volume of key business areas has declined, and the current model requires substantial changes to ensure the company’s sustainability,” the CEO wrote.
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Financial records and data from the SPARK corporate database indicate that New Cloud Technologies employed just over 1,000 people at the end of 2025. The company’s net loss exceeded 4 billion rubles (around $50 million), more than triple the figure reported a year earlier.
According to the company’s financial statements, MyOffice recorded profit in only one of the past five years—2022—when net profit reached 386.5 million rubles.
Vedomosti also reported that some former employees alleged management initially attempted to pressure staff into resigning without compensation. One former employee told the outlet that workers were threatened with dismissal for minor violations, including arriving 10 minutes late or submitting travel reports a day behind schedule.
According to the source, employees later organized a labor union and warned the company about possible legal action over unlawful dismissals.
MyOffice was founded in 2014 by businessman Dmitry Komissarov as part of Russia’s broader push to replace Western software products following increasing technological isolation and sanctions pressure.
The office suite was adopted by several Russian state institutions, including the State Duma, which reportedly spent more than 20 million rubles on licenses in 2023 to replace Microsoft Office products.
Ownership records cited by Russian media show that cybersecurity company Kaspersky Lab controls nearly 69% of New Cloud Technologies. Komissarov currently holds a 5% stake.
According to financial documents referenced by Vedomosti, the company’s revenue fell by roughly 50% in 2025 to around 1 billion rubles (approximately $12.7 million), while debt obligations to its majority shareholder increased to nearly 25 billion rubles (around $318 million).
Earlier, Ukraine’s Foreign Intelligence Service warned that Russian state-owned and private companies could begin large-scale layoffs as early as summer 2026 due to mounting economic pressure, including high interest rates, declining revenues, and slowing consumer demand.
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