Malaysia’s Petronas to cut more than 5,000 jobs after profits slump
The state-owned oil firm will also freeze promotions and hiring until December 2026
[KUALA LUMPUR] Petronas, Malaysia’s state-owned oil and gas company, will cut about 10 per cent of its workforce in a firm-wide restructuring as it looks to reduce costs due to falling crude prices.
The company will reduce headcount by more than 5,000 people, and all those affected will be informed by the end of the year, chief executive officer Muhammad Taufik said in a briefing in Kuala Lumpur on Thursday (Jun 5). It will also freeze promotions and hiring until December 2026, he said.
“The margins are shrinking, the fields are getting smaller,” Taufik said. “It will be challenging to meet dividend targets” with current oil prices, he said.
The oil price slump – coupled with declining output from its older assets – will pose a challenge for Malaysia’s government, which derived 10 per cent of its revenue from Petroliam Nasional, the full name of the company, in 2024.
The energy producer not only anchors the nation’s energy sector, but also plays a key role in funding infrastructure, education, and social programmes through dividends and taxes.
Petronas sets its budget based on the Brent oil at around US$75 to US$80 per barrel, Taufik said. The global benchmark is currently trading near US$65, down about 13 per cent this year, as trade tensions threaten global growth, and Opec+ restores production.
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Petronas’ net income slid 32 per cent in 2024, following a 21 per cent drop in 2023.
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