By Loshinniy Nair S. Baskaran,
KUALA LUMPUR, 6 June 2025: Petroliam Nasional Bhd (Petronas), Malaysia’s national oil company, announced on June 5, 2025, that it will reduce its workforce by 5,000 jobs due to declining profits. The company also stated that it will not hire new employees until 2026.
Petronas CEO Tan Sri Tengku Muhammad Taufik explained that this move is part of a “rightsizing” effort to ensure the company’s survival amid challenging global energy markets. He emphasized that this is not a retrenchment but a necessary adjustment to remain competitive.
The company reported a 34% drop in annual profit for 2024, attributing the decline to falling international oil prices and increased operational costs. Despite higher sales volumes, weak global energy prices impacted revenue and profits.
Petronas plans to finalize its workforce restructuring by mid-2025 and implement changes in phases during the second half of the year. The CEO assured that the process would be conducted respectfully and equitably, with affected employees receiving necessary assistance.
This decision aligns Petronas with other global oil companies like Shell and ExxonMobil, which have also reduced staff in response to industry challenges and the global shift towards renewable energy, as stated in Malaymail.
