Employees of the Progress Research Institute of Microelectronic Equipment, a subsidiary of Element, received their September salaries and long-overdue vacation bonuses this Friday. The institute had been facing payment delays since July 2026, with arrears reaching up to a month by September.
The financial instability led to staff turnover, with some employees resigning and others filing for suspension of work. Technical specialists, including engineers and developers, were among those leaving. The institute's headcount has dropped from approximately 280 to 220 people since January 2026.
Reports indicate that Element has set a target to reduce the institute's staff to 150 employees. The financial difficulties at Progress are linked to penalties imposed by the Ministry of Industry and Trade for delays in state contracts, including fines of 429.3 ₽ million in February 2026 and 24 ₽ million in May 2026.
Element stated that the changes are part of planned management adjustments to improve efficiency. Meanwhile, other subsidiaries are also undergoing staff reductions; in September 2026, Nanotronika requested approximately 20% of its staff, or about 20 people, to resign voluntarily.