Petronas to cut nearly 10% of its workforce and freeze hiring
author: Ann
2025-06-12
Tengku Muhammad Taufik, president and CEO of Petronas, announced on June 5 local time that the company will launch a restructuring plan, including laying off nearly 10% of its employees and freezing recruitment until December 2026 to ensure long-term competitiveness. The company's website shows that Petronas has nearly 50,000 employees.
"Margins are falling and oil fields are getting smaller," Taufik said. He said that at current oil prices, "achieving dividend targets will be challenging."
The oil price plunge, coupled with declining production from its old assets, will pose a challenge to the Malaysian government, which will receive 10% of its revenue from Petronas in 2024. Energy producers are not only the backbone of the country's energy sector, but also play a key role in funding infrastructure, education and social projects through dividends and taxes.
Taufik said Petronas has set a budget of around $75 to $80 per barrel based on Brent crude oil. The global benchmark is currently trading near $65, down about 13% this year as trade tensions threaten global growth and OPEC+ resumes production.
Petronas' net income falls 32% in 2024, following a 21% drop in 2023.
"Margins are falling and oil fields are getting smaller," Taufik said. He said that at current oil prices, "achieving dividend targets will be challenging."
The oil price plunge, coupled with declining production from its old assets, will pose a challenge to the Malaysian government, which will receive 10% of its revenue from Petronas in 2024. Energy producers are not only the backbone of the country's energy sector, but also play a key role in funding infrastructure, education and social projects through dividends and taxes.
Taufik said Petronas has set a budget of around $75 to $80 per barrel based on Brent crude oil. The global benchmark is currently trading near $65, down about 13% this year as trade tensions threaten global growth and OPEC+ resumes production.
Petronas' net income falls 32% in 2024, following a 21% drop in 2023.
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