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Garth Vader said:
With those odds I have had a hell of a time encircling the Soviets, but I think they are disbanding heavily damaged divisions. So it's late Sept 41 and I have them down to about 230 divisions.
I'm pretty sure the rapid loss of divisions is at least partially due to a bug: Sometimes unsurrounded troops vanish instead of retreating when loosing a battle, I read similar reports on the forum and I wrote a report to Paradox about it. It's particularly a problem in Barbarossa (for both sides) when the overall division counts are high and there's a lot of combat - the losses in AI vs. AI handsoffs usually are astonishing and make the outcome kind of a gamble.