PETRONAS laid off more than 5,000 employees in June as a cost-cutting measure due to falling crude oil prices. Today in Parliament, Prime Minister Datuk Seri Anwer Ibrahim said that among the factors causing employees to be fired was the duplication of duties after PETRONAS began using artificial intelligence (AI) and new technology in its operations.
The welfare of the laid-off employees, however, has not been ignored as several initiatives have been taken such as placing them in GLC and GLIC companies. The Prime Minister has previously stated that the majority of employees who lost their jobs were contract workers.
In an interview conducted by CEO Tengku Muhammad Taufik in February this year, he said that workforce reduction measures were necessary for PETRONAS to survive in its expanding and increasingly challenging global operations. If this action is not taken, the company may no longer exist within 10 years.