According to this report by NST, National oil company Petroliam Nasional Bhd (Petronas) “may lay off about 1,000 staff whose positions will be redundant under the group’s transformation exercise. In a statement, it said exhaustive efforts would be undertaken to first redeploy the 1,000 positions and will further embark on a separation exercise for these employees as needed which is expected to be completed over the next six months. This marks the first major decision it had to make since the plummeting oil prices in June 2014. Petronas said the new structure is a part of deliberate, sequential measures that Petronas is undertaking to better navigate the organisation through tough external environments. “This marks the start of a total group-wide transformation geared towards making it more resilient and focused to thrive both in the current and future industry landscapes. “Consequently, this group-wide transformation is expected to result in redundancies of under 1,000 positions. Exhaustive efforts are on-going to re-deploy affected employees. It also announced the recent appointment of Datuk Mohd Anuar Taib as the upstream executive vice president and chief executive officer, alongside Md Arif Mahmood and Datuk Manharlal Ratilal.”
Looks like the drop in Oil prices is forcing people out of jobs. Especially in a heavily oil dependent economy like Malaysia. Petronas is responsible for a huge chunk of income for the Malaysian government, as dividends account for about 45% of our annual budget.
Recently on the 26th of February, Petronas announced a 2 billion Dollar fourth quarter loss. This was the first time Petronas has reported a loss since it started reporting quarterly results about 5 years ago.
This is troubling news for Malaysians everywhere as it may be a sign of things to come this year, which 2 months in, is already looking bleak in economic terms. Many on the ground level have already been affected by our economic shortcomings. We’ve already spoken to many shop owners who’ve had to shut down their businesses this year.
What do you guys think? Leave us your comments below.