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    • Alrosa plans production and staff cuts for 2025
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    Alrosa plans production and staff cuts for 2025

    Online Niel Posted on

    Marinychev, who was also added on the EU’s sanctions list, said the global diamond industry was in a “deep crisis”, with prices falling for the second consecutive year.

    According to the executive, the miner may cut its labor costs by 10% next year, which could include layoffs among its 35,000 employees.

    “Certain areas that are less profitable, that are on the edge of profitability, may be subject to suspension in this period of crisis,” Marinychev told a local television station in Russia’s Far Eastern Yakutia region, home to the largest part of the Alrosa production.

    He added that production in these areas could quickly resume if the market recovers.

    “At the moment we are in a rather difficult situation. Our task is to endure and wait for this period, to wait for prices to start rising again,” said Marinychev.

    Alrosa, which competes with Anglo-American unit De Beers, stopped publishing sales data after Russia began its invasion of Ukraine in 2022.

    By the end of that year, Alrosa’s production volume had reached 35.5 million carats, an increase of 10% year-on-year, accounting for more than 90% of all Russian diamond production.

    Russian government regularly buy diamonds from Alrosa through a state fund.

    On Thursday, Deputy Finance Minister Alexei Moiseev said the country would continue to buy diamonds in 2025 to support the diamond industry and market.

    Russia’s 2025-2027 budget has allocated $1.55 billion for the purchase of precious metals and precious stones, Moiseev said in a statement.

    Russia will continue to ensure “stable global rough diamond prices following oversupply in the current market,” it said.

    (With files from Reuters)

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