Gazprom Plans Major Layoffs Amid Losses

Gazprom is considering a significant reduction in its workforce by laying off 1,600 employees from its central office in St. Petersburg, which would represent a nearly 40% cut in management personnel. This move comes in response to severe economic challenges stemming from the Ukraine war, including a drastic reduction in gas sales to Europe and a record net loss of 629 billion rubles in 2023. The company's management structure is expected to be streamlined to enhance decision-making speed and eliminate redundancy, as outlined in a letter from Deputy Chair Elena Ilyukhina to CEO Alexei Miller. Gazprom's payroll expenses for its central office are currently over 50 billion rubles annually, and the proposed layoffs could see the management team shrink from over 4,100 to 2,500 employees. Although Gazprom's finances showed slight improvement in 2024, analysts suggest that the company is unlikely to return to its previous profit levels given the sustained loss of its European market. The decision regarding the layoffs is expected to be finalized by mid-February.