Historic layoffs at Gazprom: 4,100 positions eliminated

In a world where energy shapes the balance of geopolitical power, the crisis hitting Gazprom reveals the fractures of a once unshakable giant. Pillar of the Russian economy and strategic instrument of the Kremlin, the group is facing a brutal fall in its revenues, aggravated by the loss of its European markets and international sanctions. Now forced to reduce its workforce in a historic manner, Gazprom finds itself at a decisive stage, where its strategic choices will determine its future, but also that of the Russian economy.

A historic restructuring plan for Gazprom

Gazprom management announced a historic 40% reduction in administrative staff at its St. Petersburg headquarters, from 4,100 to 2,500 positions. This measure, detailed in an internal letter written by Elena Ilioukhina, vice-president of the board of directors, reflects a major change for the company, which had until then distinguished itself by continuous growth. The decision was confirmed by Sergei Kupriyanov, spokesperson for Gazprom, who nevertheless refused to provide further details. He said that “we do not comment on internal procedures.”

These job cuts come against a backdrop of a deep economic crisis for the Russian gas giant. In 2023, Gazprom recorded a net loss of $7 billion, a first in more than two decades. Many factors explain this unprecedented situation, including the cessation of gas transit via Ukraine, a measure taken by kyiv to reduce Moscow's revenues in response to the war. Furthermore, the loss of the German market, a direct consequence of the sabotage of the Nord Stream gas pipelines in 2022, deprived Gazprom of considerable revenue. These combined events reflect the scale of the challenges facing the group, both economically and strategically.

Between sanctions and market reconfiguration

Gazprom also faces the devastating impact of international sanctions imposed by Western powers. Among the most significant measures are the restrictions targeting Gazprombank, the group's main financial lever, as well as sanctions against its oil subsidiary, Gazprom Neft. These initiatives, combined with the loss of its European market (once a major source of revenue), have increased pressure on the group's liquidity, already weakened by a hostile economic environment.

Faced with this situation, Gazprom strives to redirect its exports to new markets in Asiamainly in China and India. Although this strategic reorientation opens up prospects for diversification, it remains insufficient to compensate for the massive losses suffered in Europe. At the same time, Russia's critical dependence on energy revenues indicates the vulnerability of its economy to prolonged disruption. According to experts, this combination of sanctions and reconfiguring markets could exacerbate internal tensions within Gazprom, while weakening an energy ecosystem already undermined by global fluctuations in energy prices.

The crisis shaking Gazprom goes well beyond the company's borders, because it reveals the deep flaws of a Russian economic model based on excessive dependence on hydrocarbons. While Western sanctions and the loss of European markets upset its balance, Moscow is trying to redirect its exports towards Asia. However, this strategy, although essential, struggles to compensate for the colossal losses suffered and sheds light on the challenges of a still uncertain economic transition. For Russia, this situation could constitute a major shift, between the need to redefine its economic priorities and the risk of an erosion of its influence on the international scene.