Massive Layoffs Planned at Gazprom Germania

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Picture source: Reuters

The Russian gas giant Gazprom intends to make deeps cut at its European holding in Berlin, Gazprom Germania, according to Handelsblatt sources at the company.

Gazprom Germania plans to lay off 100 of its 230 staff at its Berlin headquarters. Many German executives will be replaced and the corporate development department will be dissolved.

The shakeup at Gazprom Germania comes as part of a broader restructuring of Gazprom’s business in Europe, which will also affect its wholesaler Wingas in Kassel.

Gazprom declined to comment on the shakeup at Gazprom Germania, but confirmed the broader restructuring of the gas company’s European business.

“Our priority is to create synergies and reduce parallel structures,” Gazprom Export, the division responsible for the gas company’s foreign business, told Handelsblatt in a statement. “For this reason, we intend to pursue a reorganization that will lead to a reduction and reorganization of employees by the end of 2017.”

In 2015, Gazprom Germania generated €17 billion in revenue and oversaw 40 companies in more than 20 countries. Since the acquisition of Wingas in 2015, however, Gazprom has operated parallel structures in many markets.

According to Handelsblatt sources, Wingas will likely focus on sales to large customers. The London subsidiary Gazprom Marketing & Trading (GM&T) will be responsible for the entire trading business.

Parallel back-office operations such as accounting, personnel and legal department will also be bundled, which means more layoffs could be in store.

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