Staff at Malaysian oil and gas giant Petronas face a four day working week and pay cuts of up to 30% as the company looks to implement its plans to cut up to RM50bn ($11.3bn) in expenditure over the next four years.
Petronas CEO Wan Zulkiflee Wan Ariffin notified staff in an internal memo on Monday evening of the new wave of spending cuts, but did not go into details of how it would affect the company’s employees. He did say that the company would conduct a review of its business model that would lead to a change to its existing organisation structure.
“At this time, we have yet to determine how the review and structure change will affect our workforce; but rest assured that we will be studying all possible options to ensure that we strike the right balance between the welfare of our employees and the best interest of the business,” Wan Zulkiflee said in the memo.
A review of contract positions and positions filled by manpower supply contractors has begun as an initial step to reduce manpower costs.
Sources tell Splash that management now plans to implement the shortened working week and pay cuts as part of the cost reduction strategy.