Russian “Gazprom” suffers huge losses… and intends to lay off 40%

The giant Russian gas group “Gazprom” intends to lay off 40 percent of employees at its headquarters in St. Petersburg.
It explained that it is facing financial difficulties due to the situation in Ukraine, according to what a company spokesman confirmed.

Stop pumping Russian gas to Europe

The announcement comes two weeks after Russia stopped pumping gas to Europe via Ukraine following the expiration of a contract concluded before the attack, and Kiev refused to extend the agreement, depriving Russia of significant revenues.
In a letter to the company’s CEO Alexei Miller published by a local Russian media outlet on December 23, Gazprom Vice Chairman Elena Ilyukina proposed reducing the number of Gazprom management employees by “more than 4,100” to “2,500 people.”

Russian gas stopped

Gazprom’s communications officer, Sergei Kupriyanov, confirmed the document’s authenticity and simply said, “Yes.” He added, “We do not comment on internal procedures.”
“The challenges facing Gazprom Group require reducing the time for preparation and decision-making,” Ilyukina said.
The proposed layoffs do not include employees at production sites.
Gazprom, the main company for the Russian economy, which is headed by Alexei Miller, who is close to Vladimir Putin, is facing a decline in shipments delivered to European markets since 2022.

Gazprom losses

In 2023, Gazprom’s net loss reached about seven billion dollars for the first time in more than twenty years.
The group has suffered successive setbacks for three years, starting with the cessation of supply operations to Germany after two Nord Stream pipelines in the Baltic Sea were sabotaged in September 2022.
The Russian newspaper Vedomosti quoted experts as saying that Gazprom will lose about 5 billion euros in revenue annually due to the cessation of supply operations through Ukraine, or about 6 percent of its revenues.