Petronas Announces 5,000 Job Cuts Due to Falling Oil Prices

Petronas to Cut 5,000 Jobs Amidst Falling Oil Prices Malaysia's national oil company, Petronas, has announced plans to reduce its workforce by approximately 5,000 employees. This restructuring, according to Deputy Prime Minister Fadillah Yusof, is a direct response to the ongoing downturn in global crude oil prices. "The restructuring process at Petronas is necessary given the current decrease in crude oil prices," Yusof stated. The decision was confirmed by Petronas President and CEO, Tengku Muhammad Taufik Tengku Aziz, on June 5th. He emphasized that the reduction is part of a broader effort to adapt to challenging global operating conditions. "The company will reduce 10% of its workforce to navigate these challenging operational circumstances, particularly due to the decrease in crude oil prices," Aziz explained. The affected employees will be informed in stages throughout the coming year. The government has worked to clarify the situation, ensuring that the downsizing is not linked to any disputes with Petroleum Sarawak Bhd (Petros). A joint declaration between the federal and state governments confirms this understanding, highlighting cooperation to address the challenges facing the oil and gas industry in Malaysia.