Petronas is expected to undergo MASSIVE layoffs in its workforce, the CEO and President announced.
Tengku Muhammad Taufik Aziz said 10% of the workforce will be retrenched through a comprehensive restructuring following the fall in crude oil prices.
As for those who are expecting promotions or job candidates who have eyes on Petronas, Tengku said the company will be freezing promotions and hiring of new employees until December 2026. Challenges are expected to continue this year, partly due to the continued decline in Brent crude oil prices.
Margins are also expected to shrink further, which Tengku said will make situations difficult for the company to meet dividend targets with the current oil prices, Harian Metro stated.
According to Bloomberg, the fall in oil prices, coupled with reduced production from older assets, will pose a challenge for the government, which derives 10 per cent of the country’s revenue from Petronas by 2024. Tengku said Petronas planned its budget based on Brent oil prices of around US$75 to US$80 (approximately RM318 to RM338) per barrel.
Petronas recorded a net profit of RM55.1 billion in 2024, down 31.7% from RM80.7 billion a year earlier due to lower average prices and tax adjustments in 2023.
So, what about those who face retrenchment?
Tengku explained that around 5,000 employees, including high-level employees, will be laid off, including contract workers, while new employees will not be affected, reported Utusan. Those who are facing the layoffs will be notified in stages throughout the year.
What do you think of massive layoffs?
