Petronas Shed 1,000 Jobs

In a move unparalleled in its history, Petroliam Nasional Bhd (Petronas) is cutting as many as 1,000 jobs as it reorganises its businesses and trims the fat to counter a slump in the price of crude oil.

The company said a voluntary separation scheme (VSS) will be offered within six months to select staff following an ongoing talent matching and redeployment exercise. Non-critical contract staff will not see their employment extended.

The redundancies, Petronas said in a statement yesterday, were the expected result following an ongoing group-wide transformation programme. The new structure – designed for a flatter, leaner and more efficient business operating model – is a part of deliberate, sequential measures that Petronas is undertaking to better navigate the organisation through tough external environments.

This came a day after Petronas reported a 53% drop in pre-tax profits to RM36bil for the year ending Dec 31, 2015. The packed townhall session was held at Petronas Twin Towers and lasted more than two hours.

Crude oil prices went on a downward spiral beginning mid-June 2014, from US$115 (RM483) per barrel to now trading at US$35 (RM147) a barrel..