Wintershall Dea is planning to axe about 500 jobs or about a quarter of its staff as part of its efforts to withdraw its activities from Russia, in the wake of Moscow’s invasion of Ukraine.

By adjusting company structure, Wintershall Dea intends to focus more on its strategic priorities while boosting its competitiveness and reducing administrative costs.

Wintershall Dea CEO Mario Mehren said: “We have adjusted our corporate strategy in line with the changing energy sector and our exit from Russia, and we are now refocusing our organisational structure accordingly.”

Wintershall Dea expects the restructuring to result in annual cost savings of €200m ($214m).

The company also intends to reduce its management board from four to three.

The group’s board management will comprise board chairman and chief executive officer Mario Mehren, chief operating officer Dawn Summers, and chief financial officer Paul Smith.

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By GlobalData

By Mid-2024, Wintershall Dea’s activities with Russian participation, including its stake in the Nord Stream pipeline as well as joint ventures with Gazprom, will be legally separated.

For the implementation of the restructuring plans, Wintershall Dea will make €225m in provision in third quarter 2023.

Furthermore, the company will have only one headquarters which will be situated in Kassel, Germany.

Internationally, Wintershall Dea proposes a joint business unit to lead all of its activities in Algeria, Egypt, Libya and the UAE. It will maintain offices in Cairo, Abu Dhabi and Tripoli.

Mehren said: “We are changing the way we operate and strengthening our international business units. To do this, we have to take the difficult step of reducing our teams in Germany.

“Our decision is clear: We are leaving Russia. The legal separation of our international business from the Russian joint ventures is a further step in this process.”