“Ukrzaliznytsia plans to cut a quarter of its management staff by the end of the year
10 July 19:49
By the end of 2025 , Ukrzaliznytsia intends to cut at least 25% of its administrative and management staff. This was announced by the company’s CEO Oleksandr Pertsovsky in an interview with Forbes Ukraine, "Komersant Ukrainian" reports.
What we know:
- The Iron Efficiency program provides for the elimination of more than 500 positions.
- The optimization will primarily affect inefficient administrative units that have lost their importance due to digitalization.
- The company proposes to transfer some employees to operational positions where there is a shortage of personnel, in particular, among conductors, drivers, and repairmen (the shortage is about 20%).
What the company says:
“UZ has too many intermediate management levels and duplication of functions. They will be cut,” Pertsovsky said.
According to Forbes sources, some service departments of the central office will be cut by up to 50%.
Reasons for the cuts:
- Personnel costs account for about 52% of the company’s total expenses.
- In 2024, salary costs grew by 14% to ₴51.8 billion, while revenue grew by only 11% to ₴104.1 billion.
- In 2024, the company suffered a loss of ₴2.75 billion (compared to a profit of ₴4.9 billion in 2023).
- In the first quarter of 2025, revenue fell by 22% to ₴20.9 billion, and the loss increased to ₴6.7 billion.
The main reason for the drop in profits:
- A sharp decline in freight transportation, which has traditionally been the company’s main source of revenue.
