KUALA LUMPUR (June 10): Petroliam Nasional Bhd (Petronas) said on Tuesday that employees affected by its ongoing workforce reduction exercise will receive a market-competitive separation package that exceeds the minimum statutory requirements.
In addition to financial compensation, impacted employees will also receive career coaching and job search assistance, emotional support services, a medical assistance programme, as well as opportunities for upskilling and reskilling, and financial planning guidance.
The packages and benefits will be structured based on employees’ years of service and may vary depending on employee category and eligibility, said Petronas.
In a statement, the state-owned oil-and-gas group said it remains “deeply committed” to the welfare of its people, and will ensure that impacted employees are treated with compassion and respect.
While acknowledging that this is a difficult decision, the company stressed that it is a necessary move to safeguard its long-term growth and ability to continue serving the nation.
“To support employees affected by this exercise, a comprehensive transition programme has been put in place. Every decision is made with fairness, respect, and professionalism,” it said. “Impacted employees will receive a market-competitive separation package — one that exceeds minimum statutory requirement”.
The 10% workforce reduction exercise is expected to affect some 5,000 employees amid challenging operating conditions, particularly falling crude oil prices.
Petronas on Tuesday said it has also established a Transition Council and People Development Committees to oversee talent mapping.
Placement decisions are made collectively through structured platforms, with the process adhering to necessary legal requirements and adopting the required industrial relations practices.
The company has also engaged with the Department of Labour and the Department of Industrial Relations under the Ministry of Human Resources to ensure the implementation aligns with statutory obligations.
In addition, Petronas said it is working closely with various government-linked companies to facilitate potential placements within their organisations.
The company’s entrepreneurship programme, run by Petronas Innovation Garage, also offers a guided pathway into business ownership for those exploring alternative career paths.