Russian Energy Giant Gazprom Plans Massive Layoffs After Record Losses
Jan 13, 2025 16:17
Authors Vlad Litnarovych
Facing massive financial losses and a shrinking market, Russian energy giant Gazprom is preparing to cut its workforce at the company’s central office. The proposed cuts could affect 1,600 employees and are part of a broader effort to reduce costs following a steep decline in European gas exports, Russian media The Moscow Times reported on January 13.
Gazprom’s Deputy Chairman of the Board Yelena Ilyukhina sent a letter to Gazprom CEO Alexey Miller proposing the layoffs. The letter highlights “the challenges facing the Gazprom Group” and the need for “cost optimization at all levels of management and production.”
Ilyukhina noted that Gazprom spends approximately $485 million annually on salaries for central office employees. She suggested reducing the staff size from 4,100 to 2,500 employees.
Gazprom’s decision stems largely from its decision to cut gas supplies to most European countries in an attempt to pressure them over Ukraine. The strategy backfired, with exports to Europe plummeting.,
In 2023 Gazprom delivered just 69 billion cubic meters of gas to non-CIS countries, marking its lowest level since 1985. Exports to Europe dropped to 28 billion cubic meters, a figure reminiscent of the late 1970s.
Although exports to Europe slightly increased in 2024 to an estimated 32 billion cubic meters, this remains just 18% of pre-war levels, which peaked at 180 billion cubic meters in 2018–2019.
Efforts to offset European losses by pivoting to China have also fallen short. Russian leader Vladimir Putin’s ambition to supply China with 100 billion cubic meters annually has stalled. Chinese President
Xi Jinping has not signed a deal for the Power of Siberia-2 pipeline, and the Power of Siberia-1, launched in late 2019, has only managed to replace about 25% of Gazprom’s former exports to the EU, even at full capacity of 38 billion cubic meters per year.
In
2023, Gazprom reported its first net loss in 25 years under international financial reporting standards, amounting to $6.1 billion.
From January to September, its core gas business remains deeply unprofitable. Losses for the first half of the year totaled $4.66 billion.
Further challenges loom as Gazprom’s gas transit agreement with Ukraine, a key route for delivering 12–15 billion cubic meters of gas annually to Slovakia, Austria, and Czechia, expired on January 1, 2025. Analysts estimate this could cost Gazprom an additional $6 billion in annual revenue.
Zitat von Titus
Huch, Eure Talfahrt nimmt ja richtig Fahrt auf:bei 81.5 Stand er noch im April ?
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