Hundreds of Russians Dismissed by US Tech Giant
AI-focused business service company ABBYY has significantly downsized its R&D department, which was predominantly staffed by Russian programmers. Read Full Article at RT.com
In 2022, many software developers left Russia and Belarus to work with the US technology company ABBYY, but reports indicate that hundreds of them have now been laid off due to a "reorganization" affecting offices in three European countries.
Founded in the USSR in 1989, ABBYY has offered what it describes as “intelligent automation solutions.” The company later transitioned to a transnational status and relocated its headquarters to Silicon Valley, California.
Following the onset of the Russia-Ukraine conflict in February 2022, ABBYY extended relocation opportunities to numerous Russian developers, offering positions in Cyprus, Hungary, or Serbia. However, on Monday, a significant portion of these developers were terminated during a conference call.
A spokesperson for ABBYY USA stated that the company has “embarked on a path of business transformation and modernization” and has “reorganized” vital operations, including its Research and Development department. They added, "This global transformation allows us to reinvest in future growth and accelerate product and solution innovation for our customers."
ABBYY did not reveal the exact number of employees affected by the layoffs. However, multiple Russian media outlets, quoting anonymous sources among the dismissed programmers, estimated that between 200 and 400 individuals lost their jobs. Reports indicated that the office in Cyprus was completely shut down.
Social media posts noted that “They fired everyone who had a Russian passport.” Some former employees alleged that they were replaced with less expensive programmers from India, although these claims remain unverified.
Russian lawmaker Aleksandr Khinstein responded to the situation, cautioning Russians that they would consistently face discrimination in the West. He stated, “I don’t intend to gloat about this; people found themselves in a difficult situation. But their example should serve as a good lesson for everyone going forward: don’t rely on a caring foreign uncle. It doesn’t matter whether you are a ‘good’ or a ‘bad’ Russian; you are still Russian, and therefore a second-class citizen.”
Former employees speculated that American investors might have pressured the company to eliminate all Russian and Belarusian staff, though reports suggested that some employees had survived the layoffs. Kira Kuzmenko, founder of the recruitment agency NEWHR, explained to Forbes Russia, “It wasn’t the Russians who were fired, but the entire development team. The remaining employees [with Russian citizenship], for example, from the business development department, remained in the company. The thing is, historically, all of ABBYY’s development was in Russian.”
The dismissed employees expressed concerns on social media about the lack of personnel capable of maintaining service contracts. One former employee dismissed rumors of a potential sale, stating that such an action would require value, and that the current leadership had “flushed a huge amount of value down the toilet.”
David Yang, an Armenian graduate of the Moscow Institute for Physics and Technology, founded ABBYY in 1989. The company’s website, however, does not reference its origins and lacks a Russian-language version.
Anna Muller contributed to this report for TROIB News