The drop of industrial production in 1991-98 at most enterprises of Russia had an impact on all areas of their activity. Drastic decline in capacity utilisation made personnel cutbacks objectively necessary. A qualitative analysis of the state of production and of the numbers of personnel by subdivisions and groups shows essential. An analysis performed by the author of the numbers of personnel at the enterprises of the Ural region showed that while production volume dropped by a factor of 7-10 times, the overall cutbacks in personnel do not exceed 50-60 percent. The author’s observations drive him to conclude on the absence of profound change in the relationship between hired employees and the management of most enterprises in 1991-97. However, the situation was to change dramatically at many enterprises in 1998-99, in connection with the financial incapacity of most of them for continuing to carry surplus personnel and to maintain nonproduction spheres.