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Petronas Group Chairman and CEO Tengku Muhammad Taufik Tengku Aziz (left) and Petronas Chairman Tan Sri Ahmad Nizam Salleh. (Photo by Suhaimi Mohd Yusuf / The Edge)
+A KUALA LUMPUR (September 4): Despite the unprecedented challenging environment facing Petroliam Nasional Bhd (Petronas), its Chairman and Chief Executive Officer (CEO) of the Tengku group Muhammad Taufik Tengku Aziz has ruled out any possibility of laying off its employees .
Since the national oil company plans to cut costs as part of its strategy to tackle the market, the group is nevertheless considering pay cuts, Tengku Muhammad Taufik told the media at the group’s results briefing today.
There is no concrete decision on the timeline and the amount, he added.
“I would like to emphasize that our employees are our most valuable asset. It is not my intention to opt for downsizing,” he said, adding that the group will face the tough times ahead “as a family.”
Earlier, Tengku Muhammad Taufik mentioned that Petronas was looking to restructure its human capital, in line with its strategy to readjust its business portfolio, which includes a more rapid expansion towards renewable energy.
This was after the group announced a net loss of RM21.03 billion for the second quarter ending June 30, 2020 (2QFY20) due to weak oil demand and massive impairments, its first quarterly loss since 4QFY15.
In March 2016, Petronas undertook a job reduction exercise involving 1,000 employees, when it offered voluntary severance plans and halted contract renewals for non-critical staff.
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