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Home Artifical Intelligence

Prime Minister: Petronas Layoffs Due To New Technologies, AI Adoption

Welfare of affected employees safeguarded, with job offers from other government-linked companies.

by Heirul Kamel
August 14, 2025
Petronas-file-photo-reuters

Image: Reuters

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The recent Petronas layoffs were the result of overlapping job functions arising from the company’s transition to new technologies and the adoption of artificial intelligence (AI), Prime Minister Datuk Seri Anwar Ibrahim said today. He explained that the move was aimed at improving operational efficiency, which in turn created redundancies in certain roles.

Speaking at Dewan Rakyat today, Anwar said that while the move has affected employees, steps are being taken to safeguard their welfare and that of their families. These include offering positions in other government-linked companies (GLCs) and government-linked investment companies (GLICs).

petronas petrol station right-sizing
Photo: Chongkian/Wikimedia

“This isn’t a minor issue — we are deeply concerned,” he said. “I have personally held multiple discussions with the group chief executive officer Tan Sri Tengku Muhammad Taufik to address this matter.”

Anwar’s statement was in response to a supplementary question from Datuk Mohd Isam Mohd Isa. The BN-Tampin representative had enquired on the rationale behind Petronas’ move to trim its workforce despite its strong financial performance.

Petronas-file-photo-nst
Image: Genes Guiltah, via Business Times

Earlier in June, Petronas president and CEO Tan Sri Tengku Muhammad Taufik announced a cut of 10% of its workforce as part of a “right-sizing” effort. He noted that the move is aimed at improving operational efficiency rather than responding to financial distress, and promised that displaced employees would be treated “respectfully and equitably.”

(Source: New Straits Times)

Filed Under AIlayoffspetronas
Updated 7:18 pm, Thu, 14 August 25
https://lowy.at/ufri9
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