Fozzy Group, the retail group managing the «Silpo», «Fozzy», «Thrash! Trash!» and Fozzy retail chains, has announced a series of strict measures to cut corporate expenses. In an internal letter to employees, the company stated that it is fully abandoning the salary review planned for the autumn, cancelling bonuses for the third and fourth quarters, and temporarily suspending hiring for open positions. From 1 October 2026, the retailer is forced to suspend its voluntary medical insurance program for employees.
Cost-cutting measures and their scale
Taken together, the announced steps amount to a systemic rather than targeted reduction in spending: they affect the payroll (bonuses, indexation), HR policy (hiring freeze) and social guarantees (voluntary medical insurance). The company emphasizes that such decisions are being made against the backdrop of rising operating costs and the need to restructure supply chains, which makes cutting discretionary spending a necessary measure to preserve the financial stability of the business.
The cause — strikes on logistics infrastructure
The direct trigger was significant damage from enemy shelling. On the night of 27 to 28 August, a Russian attack damaged a Fozzy hypermarket and production facilities in Vynhrove. According to the company, a total of 10 distribution centers supplying the «Silpo», «Fozzy», «Thrash! Trash!» and Fozzy chains were damaged in August alone, and one missile strike completely destroyed a «Silpo» supermarket in Kryvyi Rih. “We have lost part of our logistics and production infrastructure and stock inventories. At the same time, logistics costs have risen significantly, as we had to quickly reroute and rebuild our supply chains,” the group’s press office explained.
Impact on the Maudau marketplace
The consequences of the attacks on logistics facilities also affected another structure within the holding. The Maudau marketplace, part of the Fozzy Group of companies, announced a partial optimization of its staff, citing the same reasons — strikes on warehouse infrastructure. Thus, the economic measures affect several business areas of the group, not just the retail chain.
Management’s position: the decisions are not permanent
Fozzy Group notes that the measures taken are forced and not of a permanent nature. The main operational priority at the current stage is the full stabilization of product deliveries to stores, while the company is simultaneously reviewing all internal expenses. “These are difficult decisions we have had to make because of the scale of the losses following the Russian attacks. They are not permanent. Once we have a clearer picture of the financial results and cash flows, we will review these restrictions,” the company concluded, promising to return to the issue of payments and resuming programs as soon as financial indicators stabilize. Exact monetary estimates of the losses are not disclosed in public sources, leaving part of the picture beyond public access.
