Gazprom announces staff cuts

MOSCOW, July 18 (UPI) -- Russian energy giant Gazprom plans to cut 10 percent of its top management, or roughly 500 key staffers, beginning in 2009, the company chief said Friday.

Gazprom chief Alexei Miller signed the order that energy analysts say is a move to counter rising energy costs, Russian commercial news agency Kommersant said.

Fiscal reports from 2007 released by Gazprom say corporate expenses rose by nearly 25 percent, in line with "rising average wages and other payments to workers."

Gazprom increased its employment base by 3,800 in 2007, which equates to a near 33 percent rise in top management positions at a cost of $1.02 billion.

Analysts say that since Gazprom cannot make a direct impact on prices on the global energy market, it must strike a balance between profit forecasts and employee expenses, though most observers say the staff cuts will have little impact on the bottom line.