Russian agricultural machinery giant Rostselmash announces production halt and mass layoffs Amid Severe Market Downturn
Russia’s largest agricultural machinery manufacturer, Rostselmash, has announced a suspension of production and lay offs of approximately 2,000 employees due to deteriorating market conditions. The company had previously reduced operations to a three-day workweek in late 2024, returning to a limited five-day schedule in early 2025 .
The Russian agricultural machinery industry has faced significant challenges, with production volumes decreasing by -30% in 2023 and an additional -12.5% in 2024, amounting to 237.1 billion rubles including VAT. Domestic sales dropped by -17.6%, totaling 198.4 billion rubles. Factors contributing to this downturn include high interest rates, increased production costs, low profitability in agriculture, and reduced state financial support .
Rostselmash’s extensive product line, which includes over 150 models and modifications of 24 types of machines and implements, continues to serve both domestic and international markets. The company exports to more than 40 countries.
As the Russian agricultural machinery industry navigates apocalyptic economic headwinds, Rostselmash’s efforts to streamline operations and invest in innovation will be crucial for maintaining solvency and supporting the country’s agricultural sector.
The EU recently imposed 17th sanctions package on Russia.