Tampiza, Lukoil: For the first time since I've been here, I'll make drastic cuts

Constantin Tampiza, general manager of Lukoil Romania, a business worth above 1bn dollars, says he is bracing up for yet another challenging year, which has already started with declines of around 6% as regards fuel distribution on the entire market. Lukoil head says he has no projections about the trend of turnover in 2010, but a thing is certain: it will be the first year when he sees himself forced to take a series of dramatic steps after the business he runs posted 12.5m dollar losses in 2009. “For the first time since I’ve been here I will make drastic cuts. The biggest challenge for me will be to reduce my headcount. Out of 7 subsidiaries, 4-5 will be left. We’re making cost savings along all the lines. We had 400 mobile phones in the company. There will be three times fewer. There’s also fixed telephony and personal phones. We had advertising worth millions. For this year, we only have 180,000 dollars. We’ll invest just 3m dollars. We’re not closing filling stations, yet, but we closed a warehouse in Satu Mare and we’re considering the warehouse of Timisoara. We cannot live without slashing expenses and if we see further losses, what’s the point of keeping the business?” Tampiza wonders.