Russian tech leader Yandex is beginning staff optimization and a project portfolio review in 2026. According to Kommersant, hundreds of specialists in the key “Search and AI” division face potential dismissal. Despite a formal group revenue increase of 28% (to 436 billion rubles), growth in the strategically vital search segment slowed to 4%, signaling stagnation in the domestic advertising market.
Q4 reporting revealed systemic losses in 6 out of 12 key divisions. The largest EBITDA deficits were recorded in “e-commerce” (-8.163 billion rubles) and “autonomous technologies” (-4.888 billion rubles). The latter is directly linked to sanction restrictions on the import of high-tech components and chips, making the development of self-driving vehicles economically unsustainable.
Toxic atmosphere for IT investment
IT market experts, including Darya Tsiruleva of KORUS Consulting, note a 10-15% reduction in IT budgets. Under isolation and instability, “there is less money in the economy,” and investors demand immediate returns, blocking long-term innovation.
While Yandex officially claims its workforce grew to 31,500 in 2025, industry analysts view current cuts as an attempt to shed unprofitable assets resulting from the inability to scale business into Western markets.
Analytical summary: For the European Union, the Yandex crisis is a signal of sanction effectiveness in the tech sector. Stagnation in search and losses in innovative divisions confirm that the Russian tech giant is losing its role as an “engine of modernization,” devolving into a local service maintaining basic digital infrastructure within a collapsing consumer market.