Petronas Is Considering Cutting Some 1,000 Jobs From Its 51,000 Employees

The KL-based company reported its third loss in five quarters on Monday.

Cover image via Charles Pertwee/Bloomberg

Petroliam Nasional Bhd (Petronas), the Malaysian state-owned oil company, has announced management changes and plans to cut workers as it seeks to trim operating costs to cope with the worst price slump in a generation, BloombergBusiness reported

A Petronas gas station stands in front of the Petronas Twin Towers.

Image via Charles Pertwee/Bloomberg

In a statement posted on its website, the company said its new business structure is expected to result in the loss of 1,000 jobs

It didn’t specify if the positions to be vacated were those of permanent or contract employees. The company had about 51,000 workers as of the end of 2014.

"Exhaustive efforts are on-going to re-deploy affected employees," the company said. "Petronas will further embark on a separation exercise for these employees as needed, which is expected to be completed over the next six months."

Petronas, which brings in nearly half of Malaysia's oil revenue, reported its third loss in five quarters on Monday, 29 February

The firm has been hit by a slump in oil prices, which fell to their lowest since 2003 on Monday. Prices have fallen by more than 70 percent in the past 18 months as exporters around the world pump out over a million barrels of crude every day in excess of demand.

In February last year, Petronas said it planned to cut capital expenditure by 10 percent and operating expenses by up to 30 percent in 2015. It also said at the time that it would cut 2016 capital spending by 15 percent.

On the other hand, read why this Penangite would rather sell chicken rice in Singapore than be an engineer in Malaysia: