Russia's Microsoft Office challenger forced to shut down offices and fire workers as reports claim it is losing millions
Russia's designated Microsoft Office replacement closes the office where it was built, with its majority owner says import substitution does not work in this segment.
MyOffice, Russia's attempt to challenge Microsoft's Office suite, has been forced to shut down offices and lay off workers as it faces mounting losses. The software company, which is majority-owned by Kaspersky Lab, announced in June 2026 that it had lost 8.82 billion rubles (approximately $107 million) in 2025, more than doubling its reported loss from the previous year. The net loss was attributed to impairment losses on intangible assets, such as software.
The company's restructuring led to the closure of its development centers in St. Petersburg and Innopolis, with the remaining staff moving to Kaspersky Lab's Moscow office. CEO Vyacheslav Zakorzhevsky confirmed the closures and stated that development investment would be cut, moving the asset to a "slow-burn" mode. Kaspersky Lab CEO Eugene Kaspersky disclosed that the product was losing market share, falling from 5% to 3% in 2025, despite favorable conditions, including Microsoft's withdrawal from the Russian market and a state mandate for local software usage.
MyOffice's failure to gain traction in the domestic market, despite the competitive advantages offered, can be attributed to its inability to convince users to adopt its products. The company's financials and market share decline indicate a long-term rout for the software firm, with its debt to primary shareholder Kaspersky Lab increasing by 33% in the past year.
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