Oil Market Slump Forces Saudi Aramco To Cut Hundreds Of Jobs: Reports

The hard hit that the novel coronavirus pandemic has dealt to the global oil industry and the consequent historic drop in crude prices has forced global oil majors to resort to costs of operations. The state owned Saudi Aramco of Saudi Arabia, the largest oil company of the world, is no exception. According to reports quoting sources with knowledge of the matter, hundreds of employees are being laid off by Aramco this month.

Following the after the unprecedented drop in oil demand and consequent hammering of crude prices because of the Cvoid-19 pandemic, the respiratory disease caused by the novel coronavirus, capital spending for 2020 has been slashed by Aramco just like many other leaders in the global oil industry. As a part of restructuring and cost curtailment strategies that have been adopted by most oil majors of the world, there has been slashing of workforces of between 10 and per cent.

Sources quoted in the reports said that foreigners comprised of the majority of the employees who were retrenched at Aramco. Reports also suggested that the company has laid off about 500 people and sources noted that the performance was the major consideration for the job cuts and a similar measure had also takes place every year.

There are more than 70,000 employees at Saudi Aramco.

“Aramco is adapting to the highly complex and rapidly changing business environment caused by the COVID-19 pandemic. We constantly review and revisit our operating expenditures where necessary to continue driving operational excellence and profitability,” Aramco said in a statement.

“We are not providing information regarding the details of any action at this time, but all our actions are designed to provide us more agility, resilience and competitiveness, with a focus on long-term growth,” it said.

The first report about the job cuts was published by Bloomberg.

In similar measures, jobs of foreigners have also been cut at Qatar Petroleum, one of the biggest energy companies of the world, in addition to slashing major spending plans in order to cope up with the dramatic drop in demand and consequently oil prices that has hit the global energy market, said reports quoting sources with knowledge of the matter.

The Kuwaiti oil minister has said this month that this key oil producer of the Gulf region has plans of not making any new hiring of foreigners for its oil sector for a year.

(Adapted from EconomicTimes.com)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s