Petronas to cut 10 pct of workforce amid oil price slump, freezes hiring until 2026
Tengku Muhammad Taufik added that Petronas will also freeze all promotions and hiring until December 2026. – AFP photo
KUALA LUMPUR (June 5): Petronas will cut about 10 per cent of its workforce as part of a major restructuring to reduce costs amid falling crude oil prices, financial news agency Bloomberg reported today.
The state-owned oil and gas company plans to cut more than 5,000 jobs, CEO Tan Sri Tengku Muhammad Taufik Aziz said in a media briefing here.
'All those affected will be informed by the end of the year,' he was quoted as saying.
He added that Petronas will also freeze all promotions and hiring until December 2026.
'The margins are shrinking, the fields are getting smaller.
'It will be challenging to meet dividend targets' with current oil prices, he added.
Petronas contributes to some 10 per cent of Malaysia's revenue in 2024 through dividends and taxes.
Tengku Taufik said Petronas had based its budget on Brent oil prices at around US$75 to US$80 per barrel.
According to Bloomberg, the global benchmark is currently hovering near US$65 per barrel.
Prices have fallen about 13 per cent this year as trade tensions weigh on global growth and OPEC+ increases production.
Petronas' net income dropped 32 per cent in 2024, after a 21 per cent decline in 2023. – Malay Mail job cuts oil price slump Petronas
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