Russia to lay off 70% of employees at major shipyard due to lack of orders

The United Shipbuilding Corporation of the Russian Federation will lay off 70% of the employees of the Khabarovsk Shipyard due to the lack of orders. About writes The Moscow Times.

The layoffs are scheduled to be completed by October 31, 2025. While the plant employed more than 500 people in 2023 and 293 in 2024, the announced layoffs will leave about 90 employees.

KhSZ, founded in 1953, was one of the largest shipyards in the Russian Far East. The company built warships, including minesweepers and anti-submarine defense vessels, and also fulfilled civilian orders.

However, the plant did not receive any major contracts after 2023.

According to Russian experts, the main reasons for the decline are the plant's remoteness from suppliers of metal and components, outdated equipment, high costs and long ship construction times.

In 2024, the company's revenue fell by 72%, the loss exceeded RUB 638 million, and net assets have remained negative for three years.

Russian auditors believe that the plant has become uncompetitive and is now at risk of shutting down.

• On July 25, it was reported that Russia's three largest car manufacturers shorten the working week because of the crisis.