Gazprom to Cut 1,600 Jobs at St. Petersburg HQ

Russian energy giant Gazprom is planning to cut approximately 1,600 employees from its St. Petersburg headquarters, reducing central office staff by nearly 40% from 4,100 to 2,500, as part of a cost-saving measure. This decision follows Gazprom's first financial loss in 24 years, largely due to Western sanctions and a significant reduction in gas exports to Europe amidst the Ukraine conflict. Deputy Chairman Elena Ilyukhina proposed the layoffs in a letter to CEO Alexei Miller, emphasizing the need to streamline decision-making and eliminate redundant positions. The plan includes utilizing automation and digitalization to replace certain roles, potentially reallocating saved funds to performance bonuses. Gazprom's financial challenges have been exacerbated by heavy taxation and Ukraine's recent halt of Russian gas transit to Europe, further diminishing its market presence in the region. The layoffs are expected to align Gazprom's management-to-employee ratio with other Russian state-owned energy firms like Rosatom.