Mass layoffs of public sector workers continue in five regions of Russia due to budget deficits

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SOCIETY 07.11.2026 / author:
Mass layoffs of public sector workers continue in five regions of Russia due to budget deficits

Staff cuts in social and educational institutions are attributed to severe austerity measures and the impact of sanctions

In five regions of Russia, mass layoffs of hospital, school, and orphanage staff have begun due to a critical shortage of budget funds. Cost optimization has affected a number of regions and territories where local authorities are forced to close institutions or cut personnel. This was reported by The Moscow Times citing 7×7, according to the portal PromPolitInform.

In the Penza, Arkhangelsk, and Tyumen regions, as well as in Primorye and Karelia, large-scale layoffs of public sector employees have begun. In the Arkhangelsk region, local authorities have decided to close orphanages, including the one in the village of Rembuyevo, which will result in 28 people being laid off. Regional Deputy Prime Minister Igor Skubenko justified this by citing the remote location of the institutions and the inability to carry further financial burdens.

Optimization and funding shortages in the regions

In the city of Zarechny, Penza region, coaches at the Olympic reserve sports school have been cut, and plans are underway to close the ballroom dancing department and the equestrian club. According to Alexander Malyshev, deputy director of the Department for Urban Development and Project Activities, these measures are driven by the overall economic situation and the impact of sanctions, which necessitate strict austerity.

In the Tyumen region, the local Department of Labor announced the release of 660 public sector workers by the end of the year, although the specific list of institutions affected has not yet been released. Simultaneously, the region is seeing a decline in production volumes, leading to the introduction of a reduced work week at the GMS Neftemash and ZAVOD BKU enterprises.

Layoffs in educational and medical institutions

In Spassk-Dalny, Primorsky Krai, the administration has begun dismissing school teachers and kindergarten staff, including speech therapists and music teachers. City authorities claim this is a necessary measure to fulfill financial obligations to the remaining staff amid a decrease in the number of students.

A similar situation is observed in Karelia, where 16 orderlies are being cut at the Pudozh hospital. Local authorities claim this is necessary for more efficient use of budget funds, yet residents of the Sortavala district and the Lakhdenpokhya hospital are also reporting dismissals of junior medical staff in their communities.

Illustrative photo: Artyom Svetlov / CC BY 4.0

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