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Russia’s Major Tech Firm Swings to Quarterly Loss on Staff Costs

(Bloomberg) -- Russia’s biggest technology company reported a net loss in the first quarter as spending on staff soared in March after the invasion of Ukraine.

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Yandex NV’s adjusted net loss was 8.12 billion rubles ($110 million) in the first quarter, compared to 2.6 billion rubles in adjusted net income in the previous quarter, the company said in a statement Wednesday. Total operating expenses grew 61% in the quarter, mainly due to personnel expenses, including a one-off to support employees after the war started, the company said.

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Yandex has plunged into crisis since Russia invaded Ukraine, caught between the Kremlin’s increasingly harsh internet censorship and a backlash in its key foreign markets. Prominent employees and board members have quit amid claims that it is whitewashing Russia’s war, while its number-two executive, Tigran Khudaverdyan, was forced to step down after being sanctioned.

Yandex said it was pulling its previous guidance for 2022 and would not provide forward-looking comments due to “uncertainty concerning future geopolitical developments including risk of further sanctions and their impact on the Russian and global economy.”

This week, Russia’s Meduza website said Yandex plans to split its Russian and foreign companies into separate businesses, citing unidentified people at the firm. Yandex denied the report.

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