Petronas Evaluating Rightsizing Efforts

KUALA LUMPUR, Feb 25 (Bernama) -- Petroliam Nasional Bhd (Petronas) is still evaluating its workforce rightsizing exercise, which will also involve a top-to-bottom approach.  

Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz said the company aims to finalise its rightsizing strategy by mid-2025.

"In the second half of the year, you will see this organisation structure being rolled out in phases. I want to emphasise that this is not about cutting 15,000 to 16,000 jobs,” he said.

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Speaking to reporters after the announcement of Petronas' financial performance for the financial year ended Dec 31, 2024 (FY2024), he dismissed claims that the restructuring would favour senior management at the expense of other employees, saying that the restructuring would affect all levels.

"Some people are saying this is a protectionist exercise where senior management is going to be shielded, while everybody else who has no say will be affected if we decide to restructure.

"The first ones who will be affected will be from management onwards,” he said.

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Responding to concerns about job cuts, Tengku Muhammad Taufik stressed that mass layoffs are not on the table.

"As reported by many, we do have 15,000 to 16,000 enablers that include all aspects of the support functions. Are you inferring that the reports which say that I am going to wipe out 16,000  (jobs) is correct? 

"It is impossible. We need to look at this judiciously and allow the business to spell out its needs," he said, adding that the affected or displaced employees would be dealt with respectfully and equitably.  

Asked on whether future yield and dividend payments to the government would be impacted by Petronas' capital allocation strategy, Tengku Muhammad Taufik emphasised that the dividend payment would be based on its affordability and board approval. 

"We will fulfil the proposed and required dividends based on affordability. It will first take into account our need to continue operating. 

"So, there needs to be an adequate cash buffer to cover three to six months of our capital requirements," he added.

Petronas has paid a RM32 billion dividend to the government following its performance in FY2024. 

-- BERNAMA