2 days ago
- Business
- Free Malaysia Today
Petronas commits to staff welfare amid job cuts, pledges competitive separation scheme
Last week, Petronas announced that the company would reduce its headcount by more than 5,000 people as it looks to cut costs due to falling crude prices.
PETALING JAYA : Petronas has reaffirmed its commitment to safeguarding employee welfare amid a company-wide restructuring exercise that will cut about 10% of its workforce, including by offering competitive separation packages.
The firm said that to support employees affected by this exercise, a comprehensive transition programme had been put in place, ensuring that every decision is made with fairness, respect, and professionalism.
'Impacted employees will receive a market-competitive separation package – one that exceeds the minimum statutory requirement,' it said in a statement.
The energy producer also said that beyond financial support, affected employees would also receive emotional support services, career coaching and job search assistance, financial planning guidance, as well as access to programmes for medical assistance, upskilling, and reskilling.
'The packages and benefits are structured based on employees' years of service and may vary depending on employee category and eligibility,' it added.
Last Thursday, Petronas president and group CEO Tengku Muhammad Taufik Aziz announced that the company would reduce its headcount by more than 5,000 people as it looks to cut costs due to falling crude prices.
He said those affected would be informed in stages through next year and that a hiring freeze would remain in place until December 2026.
Petronas today said it had formed a transition council and people development committees to facilitate talent mapping and ensure that placement decisions are made collectively, guided by established platforms.
'This process also follows the necessary legal requirements and adopts the required industrial relations practices,' it said.
The firm added that it had engaged with the relevant departments on labour and industrial relations under the human resources ministry to ensure compliance with statutory requirements.
Petronas is also collaborating with the Social Security Organisation through MyFutureJobs to explore placement opportunities for eligible affected employees in other sectors.
The potential placement of affected staff with various other GLCs, including oil and gas companies, is being explored, Petronas said.
'Additionally, the company's entrepreneurship programme run under the Petronas Innovation Garage offers a guided pathway into business ownership for those exploring alternative career paths.'
