Viewership at Russian Propaganda Outlet Rutube Collapses, Announces Mass Layoffs

Rutube, Russia’s state-backed video platform and the Kremlin’s preferred alternative to YouTube, is undergoing mass layoffs as viewership craters and its parent company, Gazprom-Media, struggles to justify the platform’s ballooning costs.

According to Frank Media, the platform’s staff were informed of “significant” cuts this week as part of a merger with Premier, an online cinema service, and Yappy, a TikTok-style vertical video app.

Employees were reportedly offered two months’ pay to sign mutual termination agreements, with management admitting the company “does not have the money to maintain such a staff.” Departures are being carried out “as soon as possible,” and witnesses described Rutube’s Moscow offices as already “filled with empty chairs.”

Gazprom-Media confirmed a restructuring of “teams and functionality” across its services but declined to specify how many employees would be affected. The holding company announced plans in June to merge Rutube, Premier, and Yappy into a single streaming platform under the Rutube brand, expected to launch in the first half of 2026.

The layoffs follow a series of attempts by the Kremlin to force Russians off Western platforms and onto domestic alternatives. After slowing down YouTube on desktops in mid-2024—blaming “technical issues” Google denied—Russian regulators fully blocked the service in December, citing “disrespect for the country” and its laws. At the time, authorities promoted Rutube as a patriotic replacement and claimed the platform’s active audience surged by 65% in 2024 to 78.3 million users.

That momentum has since evaporated. Internal financial reports from Gazprom show its media division is deeply unprofitable, posting a 247 million ruble loss in 2024 despite revenues of 163.5 billion rubles. Industry analysts say Rutube has failed to compete with international platforms, even in a censored environment, as Russian users circumvent restrictions via VPNs and continue to favor foreign services.

Once a centerpiece of Moscow’s information control strategy, Rutube has instead become a symbol of state mismanagement. Russian media insiders note that the platform’s interface, limited content library, and slow development cycle have frustrated users, while heavy-handed propaganda content has further driven viewers away.

The restructuring marks the latest setback for Russia’s digital ecosystem, which has struggled to replace Western platforms since the Kremlin’s crackdown on independent media intensified after its full-scale invasion of Ukraine. For Gazprom-Media, Rutube’s overhaul is an attempt to stem financial losses, but its declining relevance underscores a larger problem: Russia’s state-driven platforms are failing to attract audiences, even with Western competition banned.