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Gazprom Plans Significant Workforce Reduction

1 min read
Lakhta Center at night in December
Lakhta Center at night in December. Photo: Alexey Komarov / CC BY-SA 4.0

Gazprom is reportedly considering a significant reduction in the workforce of its central administration, cutting staff almost in half—from 4,100 to 2,500 employees. News of this proposal began circulating within the company last Friday. The suggestion was submitted to CEO Alexey Miller in late December by Deputy Chairman of the Board Elena Ilyukhina. In her proposal, she noted that over the past 20 years, the size of Gazprom’s administration has multiplied several times, with the current payroll budget reaching 50 billion rubles annually.

Naturally, the initiative does not originate solely from the deputy chairman—it reflects Gazprom’s procedural formalization of a broader decision.

Ilyukhina stated that the “challenges facing the Gazprom Group” necessitate shortening decision-making timelines, eliminating redundant functions and excessive bureaucracy, improving focus on results among employees involved in key processes, and “optimizing costs at all levels of management and production.”

The proposal suggests that “funds freed up by reducing labor and social benefit expenses” should be redirected toward “initiatives to enhance employee motivation and development.”

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