Petronas Restructuring Leads to 5,000 Job Losses

Petronas Job Cuts: PM Anwar Confirms Most Affected Were Contract Workers Kuala Lumpur, June 6, 2025 – The restructuring of Petronas has resulted in the termination of approximately 5,000 employees, most of whom were contract workers, according to Prime Minister Anwar Ibrahim. The announcement follows a period of declining crude oil prices, impacting the company's profitability. The Prime Minister gave a brief response to media personnel after Friday prayers in Kajang, Selangor. "Most of those let go were on contract," he stated. The decision is part of a broader restructuring strategy by Petronas to manage costs amid the challenging economic climate. Tan Sri Tengku Muhammad Taufik, President and Group Chief Executive Officer of Petronas, revealed that 10% of the company's workforce is expected to be reduced. This is a significant development for Malaysia's economy and workforce, and the government has pledged to support affected workers. Petronas' net profit fell by 32% in 2024, dropping to RM55.1 billion from RM80.7 billion in 2023, further highlighting the financial pressures driving the restructuring. The affected workers will receive communication regarding their status before the end of the year. The government is committed to ensuring a smooth transition for those affected.