KUCHING: Petroliam Nasional Bhd’s (PETRONAS’) decision to lay off more than 5,000 of its employees is not related to Sarawak’s role as a gas aggregator but is instead influenced by global economic pressures following the drop in crude oil prices below budget levels.
Deputy Prime Minister Datuk Seri Fadillah Yusof said he was only informed about the matter through media reports and has yet to receive any official briefing from PETRONAS’ management.
“I was informed that the move is part of a restructuring process to ensure the continuity of PETRONAS’ operations.
“Essentially, they are looking for ways to ensure sustainability because oil prices have dropped below budget levels,” he told reporters after attending a ‘ibadah korban’ (ritual animal sacrifice) programme organised by the Village Development and Security Committee (JKKK) of Kampung Sungai Laruh at Masjid Taman Hussein here today.
Further commenting, Fadillah, who is also the Minister of Energy Transition and Water Transformation, said he will seek a direct explanation from PETRONAS soon to understand the rationale behind the decision and to explore the best possible solutions.
“I will meet with them to get a more detailed briefing.
“So, I hope to have discussions with them to see whether we can address this issue of job layoffs,” he said.
In this regard, he stressed that speculations linking the job cuts to Sarawak’s position as a gas aggregator are unfounded.
In a statement issued on Friday, PETRONAS’ Chief Eexecutive Officer, Tan Sri Tengku Muhammad Taufik Tengku Aziz, mentioned that the company is expected to reduce around 10 per cent of its workforce or more than 5,000 employees as part of a comprehensive restructuring plan.
He stated that the move had to be taken to reduce operational costs following the drop in crude oil prices, which has directly impacted the company’s financial standing.
