Cover image via 
PETRONAS will lay off about 10% of its workforce, impacting over 5,000 employees, as part of a sweeping restructuring exercise aimed at navigating continued profit declines and market volatility
The national oil and gas company, which employs nearly 50,000 people, is carrying out the move to "rightsize" its operations, a process that has been in the works since February this year, reported Reuters.
President and Group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz announced the decision at a media briefing on Thursday, 5 June, clarifying that the cuts will affect staff across all levels, including management.
Affected employees will be informed by the end of the year, he added.
Image via Utusan Malaysia
In addition to the layoffs, PETRONAS is freezing all promotions and new hires until December 2026, Bloomberg reported
This move comes on the back of a 32% drop in profits last year, following a 21% dip in 2023.
Tengku Muhammad Taufik said the outlook remains challenging, especially as Brent crude prices continue to fall, dragging on the company's earnings.
"The margins are shrinking, the fields are getting smaller. It will be challenging to meet dividend targets with current oil prices," Bloomberg reported, citing Tengku Muhammad Taufik.
The oil price slump, coupled with declining output from its older assets, will pose a challenge for the government, which derived 10% of its revenue from PETRONAS in 2024, the report said.
Meanwhile, despite recent speculation, the CEO also denied reports that PETRONAS is planning to exit its operations in Canada, where it owns what was formerly Progress Energy Resources Corp
"We're not exiting Canada," Tengku Muhammad Taufik said.
"We are constantly entertaining overtures and proposals. That is going to be the natural course of business and [Canada] is a very resource-endowed geography," he explained, adding that Canada is crucial to PETRONAS' ambitions to preserve its position in the liquefied natural gas space.
