Russia's state-controlled gas firm OAO Gazprom (GAZP.RS) will start reducing its staff of almost half a million employees, the Kommersant daily reported Friday, citing unnamed industry sources.
Chief Executive Alexei Miller has signed an order to cut its headquartered staff by 10% - or more than 500 of the highest-paid employees - starting Jan. 1, a gas trader said.
Gazprom confirmed it is planning measures to "cut staff and optimize their structure," the paper said.
A drastic increase in spending last year has forced Gazprom to take this step. However, experts doubt that the gas monopoly can manage to save a significant amount.
Gazprom wasn't immediately available for comment.