Multinational companies continue to pay almost 200,000 employees based in Russia despite pledges to suspend or end activities in the country, raising fears of mass sackings or nationalisations as hopes fade for a swift end to war in Ukraine.
A string of western companies from McDonald’s to Renault committed to paying thousands of employees’ wages when they halted operations in the country last month. Analysis by the Financial Times shows that at least 188,000 employees continue to be on payrolls.
The true number is likely to be far higher, as large employers including KFC owner Yum Brands and Coca-Cola have not confirmed whether they are still paying staff.
The analysis comes as Moscow’s mayor Sergei Sobyanin warned on Monday that among workers at foreign-owned companies in the Russian capital “about 200,000 employees are at risk of losing their jobs”, saying authorities had approved a support plan worth Rbs3-36bn ($41.4mn) for those at risk.
While white-collar employers such as Boston Consulting Group, Linklaters and McKinsey are transferring workers to roles in different countries, blue-collar workers in manufacturing, retail and consumer sectors risk bearing the brunt of job losses should companies see no imminent prospect of reopening.
Chip Bergh, Levi Strauss chief executive, said this month the jeans brand was still paying its 800-plus employees in Russia. But he added “the way things are going now I’m not optimistic we’ll be back in business in full force any time soon”.