Russia’s top tank maker faces deep workforce cuts

Key Points
  • Uralvagonzavod plans to reduce its workforce by around 10% by early 2026 and halt new hiring, according to internal documents referenced in reporting.
  • Workers say the actual reductions could reach up to 50% in some divisions, raising concerns about job losses among trained specialists.

A major reshuffle is underway at Uralvagonzavod, Russia’s largest tank manufacturer, after the company announced plans to sharply reduce staffing levels in the coming months.

The facility, a core supplier of armored vehicles to the Russian military, is preparing to cut up to 10 percent of its workforce by February 2026 and suspend new hiring, according to information cited by the Ukrainian defense outlet Militarnyi.

Internal documents referenced in the report indicate that a special commission has been formed to review candidates for dismissal. Employees selected for layoffs are expected to receive severance payments of up to three average monthly salaries.

- ADVERTISEMENT - CONTINUE READING BELOW -

However, workers at the enterprise say the actual scale of downsizing could be far more extensive than what is publicly acknowledged. Some factory personnel told that internal estimates suggest reductions of “up to 50% of the staff in several departments.” These employees said that highly trained specialists, including personnel with years of hands-on experience in defense manufacturing, are now at risk of losing their positions.

Uralvagonzavod is Russia’s flagship armored vehicle production facility and has been closely associated with the country’s tank output for decades. The plant manufactures and modernizes platforms including T-72, T-80, and T-90 series tanks. During the full-scale war in Ukraine, the facility has been portrayed in Russian state media as a symbol of industrial resilience and wartime readiness.

The company has not provided public clarification on which segments of production will be affected. One possibility, workers said, is that the reductions may fall primarily on the civilian division responsible for the production of rail freight cars. That side of the factory’s operations has been under pressure amid broader economic constraints, reduced domestic demand, and rising material costs.

But the employees’ concerns, cited in the reporting, raise questions about whether cuts could also touch the military division. If layoffs extend into the defense production chain, it would signal deeper issues with state financing or order flow. Despite ongoing wartime consumption of armored vehicles, Russia’s ability to sustain large-scale manufacturing depends on both steady industrial capacity and continued federal funding.

Uralvagonzavod’s situation appears to be part of a broader pattern of industrial strain in Russia’s manufacturing base. On October 26, the Ashinsky Metallurgical Plant in the Chelyabinsk region announced reductions in both production and staffing. That facility specializes in steel grades used in defense, aviation, nuclear, and petroleum sectors, indicating pressure across multiple strategic supply categories.

While Moscow has worked to increase wartime output and adapt civilian industry to military use, sustained high-intensity conflict places long-term strain on factories, suppliers, and workers. The ongoing need to replace battlefield losses also competes with financial limits and resource allocation priorities.

Readers who wish to follow our weekly coverage can subscribe to the Weekly Defense Roundup.

If you wish to report a grammatical or factual error in this article, please let us know by using the online form.

Executive Editor

Support The Defence Blog

Independent reporting takes resources. Join us on Patreon.

Become a patron

More Like This

Russia lays keel of ninth Yasen-M nuclear attack submarine

Russia laid the keel of a new nuclear-powered attack submarine on June 17, 2026, the first vessel of its class to enter construction in...

Russia reportedly upgrades Mi-28NM attack helicopter to fight drones

Russia appears to have modified its most advanced attack helicopter with new electronic warfare equipment, and the changes visible in recently released Russian military...

Kremlin moves to launch new mobilization wave

Russia is preparing a new mobilization wave, and the evidence is no longer confined to analyst assessments — it is showing up in deleted...

Ukraine hunts down Russian jammers targeting Starlink satellites

The satellite communication network that Ukrainian forces depend on to coordinate everything from drone strikes to artillery fire has a new enemy, and Ukraine...

Russian Tu-22M3 supersonic bomber crashes in Siberia

A supersonic bomber that Russia uses to launch cruise missiles at Ukrainian cities came down in a field near the Siberian city of Svirsk...