Russia’s Microsoft Office Killer Is Bleeding Hundred Millions and Shutting Down Key Offices

MyOffice, the Russian software developer once positioned as a domestic replacement for Microsoft Office, has shut down two branches as mounting losses and reported layoffs raise questions about the future of the project, according to Russian media outlet Vedomosti on August 6.

The company closed offices in St. Petersburg and Innopolis, people familiar with the situation told the outlet.

The St. Petersburg branch was particularly important because it handled development of MyOffice’s desktop editors and mobile applications, while also housing back-office operations, sales, and technical support.

Between 200 and 300 employees worked in St. Petersburg, while the Innopolis office employed around 20 people.

MyOffice CEO Vyacheslav Zakorzhevsky confirmed that “several” offices had been closed but did not identify them. He said employees had moved to the Moscow office of the company’s controlling shareholder, Kaspersky Lab, at the Olympia Park business center.

The closures follow earlier reports from Vedomosti that MyOffice employees had been warned of large-scale layoffs amid financial difficulties.

The company’s net loss surged sevenfold in 2025 to 8.82 billion rubles ($107 million). In its financial statements, MyOffice attributed the result to the “specific nature of its business,” saying payments from software sales often arrive after substantial delays.

According to Russian media The Moscow Times, MyOffice, formally registered as New Cloud Technologies, was founded by Dmitry Komissarov in 2014. Komissarov currently owns 5% of the company, while Kaspersky Lab controls 68.8%. Former Rostelecom executive Andrey Cheglakov owns another 22.7%, with the remaining shares held by several individuals.

The company opened its St. Petersburg office in 2014 and established its Innopolis branch in 2016. It previously operated another office in Samara between 2022 and 2024.

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Komissarov criticized the latest closures as “bad-faith behavior by management” and argued that shutting the offices could signal the end of MyOffice’s core development work.

“Either MyOffice will no longer develop office editors, or this expertise is being transferred to Kaspersky Lab,” Komissarov said, adding that the move had not been discussed with minority shareholders.

The problems come after Kaspersky Lab founder Eugene Kaspersky said the controlling shareholder had decided to scale back financial support for MyOffice development.

Kaspersky described MyOffice as a loss-making asset and said it was being moved into a “slow burn” mode, meaning product development and support would continue, but at a reduced level.

Earlier, Russia’s Supreme Court upheld a ruling ordering Google to pay an extraordinary 91.5 quintillion rubles (about $1.2 quintillion)—a figure roughly one million times larger than the global gross domestic product, according to court materials.

For comparison, the World Bank estimates total global GDP at roughly $100 trillion, making the court-ordered sum vastly larger than the value of the entire world economy.

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