JSC “Ukrzaliznytsia” plans to cut at least 25% of its administrative and managerial staff in 2025, which amounts to more than 500 positions. About this informs Forbes.
In 2025, Ukrzaliznytsia will spend 52% of its income on employee benefits. Last year’s losses of UAH 2.7 billion force the company to take optimization measures. “A quarter of the administrative staff of the UZ is under threat of dismissal”, – the message says.
Since the beginning of the year, the “Iron Efficiency” program has been launched at the University of Warsaw.
“The company must cut at least 25% of its administrative and managerial staff, or more than 500 positions, by the end of the year”, – explained CEO of the company Oleksandr Pertsovsky.
Office workers are offered to switch to production – “closer to the wheels”, where there is a shortage of personnel. Last year, more than 9,000 people left the company — this is the highest figure among Ukrainian employers. The shortage of conductors, machinists, repairmen is estimated at 20%.
“In order to have the moral right to explain unpopular optimization solutions to people, one must start from the head”, – comments Pertsovsky.
Optimization started with the least efficient units. According to him, administrative departments have lost their weight due to digitalization. Pertsovsky also points to an excessive number of management levels and duplication of functions that should be reviewed. According to Forbes Ukraine, with reference to a source in the company, part of the service departments of the central apparatus is being reduced to 50% of the staff.
According to the company’s consolidated reporting, personnel costs increased by almost 14% last year and amounted to UAH 51.8 billion, which is equal to 52% of total costs. These expenses grew faster than incomes. In 2024, revenue increased by 11% to UAH 104.1 billion. In 2023, UZ received UAH 4.9 billion in profit, but in 2024 – UAH 2.75 billion in losses. In the first quarter of 2025, the company’s turnover decreased by 22%, amounting to UAH 20.9 billion. At the same time, the net loss increased to UAH 6.7 billion.
The main reason for the drop in income is a sharp reduction in freight transportation – the key source of UZ’s income. In 2024, 174.9 million tons of cargo were transported, but according to the company’s forecasts, in 2025 this indicator may decrease to 165 million tons, which is only half of the volume of 2021. In addition to downsizing, UZ is selling off non-core assets, is waiting for funding from the state budget for the purchase of wagons and rolling stock, and is counting on government support in raising freight rates.
