KUALA LUMPUR – Petronas has reiterated its commitment to safeguarding employee welfare as it undertakes a strategic transformation that will see an estimated 10% reduction in its total workforce.
The national oil and gas company said the move comes as it navigates a “polycrisis” driven by global pressures and increasing challenges in unlocking the full potential of Malaysia’s oil and gas resources.
“As the company undertakes a strategic transformation to become an agile and integrated energy company, it will continue delivering safe, reliable and sustainable energy solutions, building on its strengths to remain a competitive upstream player, a dependable global LNG supplier, and to evolve into an energy superstore that provides solutions to lower-carbon intensity energy needs,” Petronas said in a statement today.
The company acknowledged the difficult nature of the decision, but said it is necessary to support long-term growth and continued service to the nation.
“This undertaking will require workforce adjustments, with an estimation of 10% reduction of the total workforce. While this is a very difficult decision, it is a necessary one to ensure Petronas can continue to grow and serve the nation. Petronas is committed to managing this process fairly, objectively, and systematically.”
Petronas said it has established a Transition Council and People Development Committees to guide talent mapping and placement decisions. These are made collectively through structured platforms, in line with relevant legal requirements and industrial relations practices.
The company also said it has engaged with the Department of Labour and the Department of Industrial Relations under the Ministry of Human Resources to ensure all statutory requirements are met in the process.
A comprehensive transition programme has been introduced to support employees affected by the rightsizing exercise.
“Every decision is made with fairness, respect, and professionalism. Petronas remains deeply committed to the welfare of its people and will ensure that those impacted are treated with compassion and respect. Impacted employees will receive a market-competitive separation package – one that exceeds minimum statutory requirement.”
In addition to financial compensation, affected employees will be offered career coaching and job search assistance, emotional support services, medical assistance, upskilling and reskilling opportunities, and financial planning guidance. These benefits will be tailored based on length of service, employee category and eligibility.
Petronas is also collaborating with Perkeso via the MyFutureJobs platform to explore placement opportunities for affected staff in other sectors. The company is working closely with government-linked companies for potential internal placements, while its Entrepreneurship Programme under Petronas Innovation Garage offers a guided route for those interested in starting their own business.
“This transformation is designed to enhance Petronas’ resilience and competitiveness in the face of a challenging energy transition,” the company said. “It also aims to ensure the company remains relevant in a rapidly evolving landscape, while enabling continued growth through focused investments and the development of a high-performing, value-driven workforce.” – June 10, 2025