National oil and gas company, Petroliam Nasional Bhd. (Petronas), is set to cut about 10% of its workforce involving more than 5,000 positions as part of a restructuring measure to reduce costs following the fall in global crude oil prices.
Its Chief Executive Officer, Tan Sri Tengku Muhammad Taufik, also announced a freeze on all new recruitment and promotions until December 2026.
In a press conference in Kuala Lumpur, he explained that the lower oil price and shrinking profit margins are making it difficult for Petronas to meet its dividend target for the country.
Petronas’ net profit plunged 32% in 2024, after falling 21% the previous year.
The company had previously projected Brent crude prices to be around $75 to $80 per barrel, but the price is now around $65, reflecting a decline of almost 13% this year due to global trade tensions and increased production by OPEC+.
Petronas contributes almost 10% to the country's revenue through taxes and dividends.
But in the current challenging market landscape, the energy giant itself is now facing a test of its own survival.
