Petroliam Nasional Bhd (Petronas) is reducing its workforce by 10% in response to tough operating conditions, driven largely by declining crude oil prices. Its president and chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the number of staff involved in the “right-sizing” effort currently stands at around 5,000.
According to Bloomberg, Petronas’ profits slid 32% in 2024, following a 21% drop in 2023. The challenges are slated to continue this year, in part due to a continued decline in Brent crude prices.
“Petronas 2.0 will be run differently, organised differently, will have different work processes, and to move towards that, we have to correct the work process,” he said during a media briefing yesterday. He also revealed the group will also freeze hiring until December 2026.
First announced in February, the right-sizing initiative was described by Tengku Muhammad Taufik as a structured effort to align the company’s workforce with evolving business needs. He stressed that the move is not a mass layoff and that it will affect staff at all levels, including senior management.
He also clarified that right-sizing differs from retrenchment, as it is aimed at improving operational efficiency rather than responding to financial distress. Displaced employees, he said, would be treated “respectfully and equitably.”
(Source: Bloomberg / The Edge Malaysia)
