Ukrainian businesses are cutting staff due to hostile attacks on industrial, logistics, and retail facilities. Notably, the Fozzy Group holding company has announced forced layoffs. *Apostrophe* investigated the current state of Ukraine’s labor market and identified which companies are laying off or hiring employees. The diversified Ukrainian holding company Fozzy Group—which includes retail chains such as Silpo, Fora, Thrash!, and Fozzy—plans to reduce its workforce. The reason for the anticipated layoffs is the loss of company facilities, including supermarkets, warehouses, and production sites. According to Fozzy Group, more than 20 of the holding’s facilities were destroyed or damaged by hostile attacks between August 1 and September 25 alone.
“Starting November 1, Fozzy Group is changing its organizational structure and ending employment for some colleagues in office teams—specifically within the holding company itself, the Silpo chain, and logistics operations,” the holding’s corporate communications and PR department told the publication. “Similar changes had previously taken place at MAUDAU and within the Temabit and E-commerce & Ecosystem IT teams.”
The holding emphasizes that the cuts specifically affect office teams:
“In other words, this does not involve individual employees at Silpo stores or in logistics roles.” “Apostrophe” inquired about the number of employees slated for layoff as part of the announced restructuring, but Fozzy Group was unable to provide an answer.
Businesses are laying off… and hiring
So, layoffs are coming, though the scale remains unknown. Incidentally, facilities belonging not only to Fozzy Group but also to other retail and logistics companies have been damaged by Russian shelling. “Apostrophe” also asked whether staff layoffs were planned at ATB—Ukraine’s largest grocery supermarket chain—whose facilities have likewise suffered damage from Russian attacks.
“None are planned,” the company briefly told the publication.
No layoffs are expected at the logistics company Nova Poshta, the national leader in express parcel delivery. As is known, the company’s distribution centers have suffered significant damage from Russian shelling.
“At present, there are no grounds for mass layoffs at Nova Poshta,” the company’s press service told “Apostrophe.”
Moreover, Nova Poshta plans to expand its network and is opening new job vacancies. “We need both the people who directly handle the physical movement of shipments and the specialists who plan, coordinate, and analyze operational processes,” the press service reported. “For instance, we are currently seeking candidates for management positions in Kyiv, Dnipro, Odesa, and Lviv. Furthermore, we always have a need for loaders, branch operators, terminal and warehouse staff, and drivers.”
Incidentally, Fozzy Group is also opening new facilities (and restoring damaged ones).
“This work requires people, so we are continuing to hire for operational roles—in supermarkets, warehouses, and production facilities across Ukraine,” the company told the publication.
Regarding workers facing potential layoffs, Fozzy Group promises to assist in finding new employment—specifically by helping with resume preparation and letters of recommendation, as well as by recommending them for open positions within the group’s businesses and at partner companies.
Beyond warehouses and supermarkets
Retail chains and logistics operators are not the only companies to have suffered losses—both human and material—due to Russian missile and drone terror. Ukraine’s metallurgical industry has effectively ground to a halt as a result of air attacks. Notably, Zaporizhstal, Kametstal, and ArcelorMittal Kryvyi Rih—which together accounted for over 90% of the country’s total steel production—are currently not operating. Will there be staff cutbacks at these enterprises due to the production halt? It is not yet known. For context, ArcelorMittal Kryvyi Rih employs approximately 18,000 workers, while Zaporizhstal and Kametstal employ around 8,000 each. There are other metallurgical plants where layoffs could also occur due to suspended operations.
“We could be talking about tens of thousands of people,” Oleh Hetman, coordinator of expert groups at the Economic Expert Platform, told *Apostrophe*.
However, there is hope that workers from these metallurgical giants—should layoffs actually occur—will be able to find new jobs quickly.
“The military-industrial complex is currently expanding rapidly, with enterprises growing by 300–400% annually; consequently, specialists with metalworking skills are in high demand, and it is expected that they will shift to these enterprises,” Hetman explains.
Furthermore, according to him, some metallurgical production is continuing at new, undisclosed locations.
Two opposing trends
In general, these are not the best times for business—especially small business—which is hardly surprising given that we are at war. In other words, there are the shellings and power outages (less frequent now, but certain to return in winter), as well as rising food and fuel prices—the latter being something Donald Trump (who still hasn’t managed to end the war against Iran) blames on Ukraine due to its strikes on Russian oil refineries.
Money is becoming scarcer across the country—whether held by the government, businesses, or the general population—leading to a decline in business activity. A year ago, *Apostrophe* reported on the mass closure of cafes, bars, and restaurants nationwide, including in the capital. The primary reason is simple: rising expenses coupled with falling revenues. It is unlikely that the situation has improved over the past year—the main hope is that it hasn’t worsened. Research findings tend to confirm this.
According to a survey of Ukrainian enterprises conducted by the National Bank of Ukraine (NBU) this August, 12% of companies in the service sector and 13% in the retail sector plan to lay off staff. Meanwhile, only 9% of businesses intend to hire new workers. In other words, there is currently no clear, across-the-board trend of staff reductions in Ukraine.
“It just so happened that large, well-known companies began cutting jobs, which caused a stir in the market,” labor market expert Tetiana Pashkina told *Apostrophe*. “When small sole proprietorships were going under, it didn’t make much noise; but now that it involves a giant like Fozzy, it’s a major talking point. But let’s be frank: we are talking about hundreds of people—or perhaps thousands across certain regions if you add it all up. These are painful figures, certainly, but I wouldn’t go so far as to call it a catastrophe for the labor market.” According to her, two opposing trends are currently visible: layoffs of office workers—such as HR managers, marketers, and IT specialists—are occurring at enterprises where operations have been curtailed due to missile strikes, yet these same companies continue to recruit for roles such as manual laborers, sales staff, and warehouse workers.
This trend is perhaps most starkly evident in the industrial sector.
“The situation in Kryvyi Rih is grim; major enterprises have shut down due to constant shelling, leaving no opportunity for operations. At the same time, however, the mil-tech sector is thriving and has a significant need for personnel,” says Pashkina.
As previously noted, many enterprises—including those in the defense industry—are relocating to safer areas. However, the entire workforce does not necessarily move along with the company. Consequently, businesses must recruit staff in their new locations—a task that is far from simple.
