Russia's Microsoft Office challenger forced to shut down offices and fire workers as reports claim it is losing millions

MyOffice closes St. Petersburg and Innopolis development centers, moving remaining staff into Kaspersky Lab's Moscow office after restructuring Parent company New Cloud Technologies restated its 2025 accounts in June 2026, raising the net loss from 4.02 billion to 8.82 billion rubles, roughly $107 m

<![CDATA[ <article> <ul><li><strong>MyOffice closes St. Petersburg and Innopolis development centers, moving remaining staff into Kaspersky Lab's Moscow office after restructuring</strong></li><li><strong>Parent company New Cloud Technologies restated its 2025 accounts in June 2026, raising the net loss from 4.02 billion to 8.82 billion rubles, roughly $107 million, while revenue halved to about 1 billion rubles</strong></li><li><strong>Kaspersky Lab, which owns 68.8%, has moved the asset to "slow burn" mode, with its CEO saying publicly that import substitution does not work in the office segment</strong></li></ul><p>Russia's flagship attempt to replace Microsoft Office has closed the office where the product was actually built.</p><p>MyOffice, developed by New Cloud Technologies, has reportedly closed its St. Petersburg and Innopolis development centers, <a href="https://www.vedomosti.ru/technology/articles/2026/08/07/1219453-moiofis-zakril-ofisi-v-peterburge-i-innopolise" target="_blank">according to news outlet Vedomosti (in Russian)</a>, which spoke with current and former employees.</p><p>CEO Vyacheslav Zakorzhevsky confirmed several offices had closed without saying which ones, and said that remaining staff had moved to the Moscow office of the company's controlling shareholder, Kaspersky Lab, in the Olympia Park business center.</p><h2 id="an-expected-exit-for-russia-s-take-on-microsoft-office">An expected exit for Russia's take on Microsoft Office?</h2><p>After four years in a captive market, a state mandate, and no Microsoft to compete with, MyOffice still managed to lose two points of market share, and its financials suggest a potential long-term rout for the software company.</p><p>The numbers in MyOffice's case are possibly the most damning here; its net loss for 2025 was 8.82 billion rubles (roughly $107 million), a sevenfold increase over the previous year.</p><p>It is important to note that this follows a June 18 2026 resubmission of its accounts for the year, which <a href="https://rb.ru/news/rossijskij-razrabotchik-mojofis-soobshil-ob-ubytke-pochti-v-9-mlrd-kompaniyu-ozhidaet-masshtabnaya-restrukturizaciya/" target="_blank">more than doubled its reported loss (RU)</a> from 4.02 billion rubles to its current level; much of this was due to impairment losses on the company's intangible assets (software).</p><p>This was somewhat prompted by the company, which is majority-owned by Kaspersky Labs (68.8%), as it cut back on several services and products, many of which were quietly discontinued as part of a restructuring that also saw it lay off employees in a bid to balance its books.</p><p>This includes several products that form the backbone of its software offerings: Mailion, MyOffice Mail, Squadus, and Documents Online, which saw development suspended even as current deployments were sustained.</p><p>At the St. Petersburg International Economic Forum, the CEO of Kaspersky Labs, Eugene Kaspersky, told TASS that the asset was loss-making and had been moved to what he called "slow-burn mode", with development investment cut. Product development and support, he said, would continue at a reduced level. He went further than the financials required, stating that import substitution does not work in the office segment.</p><p>This is a damning verdict for a company that is 24.96 billion rubles in debt to its primary shareholder, up 33% over the last year. </p><p>Despite having the most perfect set of conditions, including Microsoft <a href="https://www.techradar.com/news/microsoft-fined-millions-for-selling-software-to-russian-firms" target="_blank">formally withdrawing from the domestic market amid lawsuits</a> and a legal mandate from the state for local bodies and critical infrastructure operators to operate domestic software only, MyOffice did not manage to turn its windfall to its advantage; its product <a href="https://www.kasparovru.com/material.php?id=6A42384876FDD" target="_blank">share of the domestic market actually shrunk from 5% to 3% (RU)</a> in 2025. Its retreat is simply the result of its failure to make people use its products despite the competitive advantages it was offered.</p> </article> ]]>