Russia’s grand Microsoft Office replacement has shut key development offices after failing in a market gift-wrapped for it.
According to Yahoo Finance, MyOffice, built by New Cloud Technologies, has reportedly closed its St Petersburg and Innopolis development centres.
The outfit was meant to be Russia’s flagship answer to Microsoft Office. Instead, it appears to have found that import substitution is harder than it looks.
New Cloud Technologies chief executive Vyacheslav Zakorzhevsky confirmed that several offices had closed but did not say which ones.
Zakorzhevsky said remaining staff had moved to the Moscow office of controlling shareholder Kaspersky Lab, in the Olympia Park business centre. After four years in a captive market, a state mandate and no Microsoft to properly fight, MyOffice still lost two points of market share.
Its 2025 net loss hit 8.82 billion roubles, about $107 million, or roughly €94 million. That was a sevenfold increase on the previous year, which is some achievement when the state has already tilted the table in your favour.
On 18 June 2026, the company resubmitted its accounts and more than doubled its reported loss from 4.02 billion roubles to 8.82 billion roubles. That earlier figure was about $49 million, or roughly €43 million. Much of the change came from impairment losses on intangible assets, meaning software.
Kaspersky Lab owns 68.8 per cent of the company and has been hacking back products and services as part of a restructuring. The cuts hit several parts of the software stack, including Mailion, MyOffice Mail, Squadus and Documents Online.
Development on those products was suspended while existing deployments were kept alive, which sounds less like a roadmap and more like a holding pattern.
At the St Petersburg International Economic Forum, Kaspersky Lab chief executive Eugene Kaspersky told TASS the asset was loss-making. Kaspersky said it had been moved to “slow-burn mode”, with development investment cut. Product work and support would continue at a reduced level.
Kaspersky went further and said import substitution does not work in the office segment. The company is 24.96 billion roubles in debt to its primary shareholder, about $303 million, or roughly €266 million. That debt is up 33 per cent on last year, so the replacement for Microsoft Office has replaced profitability with a crater.
MyOffice had the dream setup. Microsoft had formally withdrawn from the Russian domestic market amid lawsuits. The Russian state had demanded that local bodies and critical infrastructure operators use domestic software only.
Yet MyOffice failed to turn that gift into dominance. Its domestic market share shrank from five per cent to three per cent in 2025.
