Aramco goes on customary redundancy plan, cuts hundreds of jobs

Saudi Arabia’s national oil giant has begun cutting hundreds of jobs across various sectors amid slump in oil demand due to covid-19 pandemic, Bloomberg reports citing anonymous sources.

The cuts concern mostly positions held by expats the sources aware of matter told the U.S-based media. The staffers were informed earlier this week.

“Aramco is adapting to the highly complex and rapidly changing business environment,” the firm 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.”

The world’s largest oil exporter employs nearly 80,000 workers and is known to operate annually a number of job cuts.

The firm worth $1.75 trillion is facing significant financial stress due to the continued oil price slump. The company has seen first-quarter profit go down by 25 percent year-on-year to 62.5 billion riyals ($16.6bn) due to collapse of oil demand because of the pandemic shutdown measures.

Though standing at $41 per cent, the oil price is below, by 37 per cent compared with projections.

The Dhahran-based producer has cut down capital expenditure for this year to between $25bn and $30bn from an initial target of $40bn and is expecting 2021 spending to be affected negatively as global economy recovery is not expected before 2021.

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