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“Some of the employees will simply quit.” Azhnyuk believes that reducing bookings to 85% will lead to the degradation of the defense industry

The initiative of the Cabinet of Ministers to reduce the share of reserved employees at defense-industrial complex enterprises from 100% to 85% may lead to a loss of momentum in the technological war and the loss of key specialists from the industry. This opinion was expressed by Yaroslav Azhnyuk, a Ukrainian IT entrepreneur and co-founder of miltech companies The Fourth Law and Odd Systems.

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“Some of the employees will simply quit.” Azhnyuk believes that reducing bookings to 85% will lead to the degradation of the defense industry

The initiative of the Cabinet of Ministers to reduce the share of reserved employees at defense-industrial complex enterprises from 100% to 85% may lead to a loss of momentum in the technological war and the loss of key specialists from the industry. This opinion was expressed by Yaroslav Azhnyuk, a Ukrainian IT entrepreneur and co-founder of miltech companies The Fourth Law and Odd Systems.

According to the entrepreneur, the miltech sector is already experiencing a staffing shortage, even before the decision has been made. Potential candidates are being dropped from the hiring process at the first call stage, and current employees are losing their planning horizon.

"85% booking is not minus 15%. This is minus 100% of the planning horizon. Uncertainty does not affect a minority, but everyone at the same time. Some employees will simply quit, and those who have the most alternatives on the market will do so," Azhnyuk noted.

He emphasized that engineers in ML, computer vision, embedded systems, and skilled workers rarely join the ranks of the Armed Forces if their armor is lost. More often, they transfer to other enterprises where their armor remains guaranteed. As a result, the state does not receive a soldier, and defense production loses a specialist.

The entrepreneur agrees with the Prime Minister’s statement on the need to rotate military personnel, who have been fighting for four years, and to combat abuses when fictitious enterprises book hundreds of people for a few units of production. However, according to Azhnyuk, this problem should be solved by checking the criteria of real production, and not by cutting rights for the entire market.

"In January, the government expanded the reservation so that the defense industry could scale. In October, it proposes to cut it. The development cycle of most technological means is much longer. Planning in such a system is impossible even with the best intentions," he added.

Earlier it became known that the Cabinet of Ministers is considering the possibility of canceling the 100% reservation of employees of critical enterprises. According to Prime Minister Serhiy Koretsky, some companies are using this mechanism to increase staff and reserve even those employees whose work is not critical.

"There is nothing to worry about for critical enterprises, which are truly critical for both the defense complex and the energy complex. I can say with confidence that there will be no radical changes for these people, for these industries," the Prime Minister explained .

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