The Saudi Aramco company has begun the layoffs of hundreds of employees during this month, in light of the repercussions of the Corona virus crisis.
According to Reuters, well-informed sources said that most of those who lost their jobs in Aramco were foreigners. A source estimated that the layoffs included about 500 people, adding that it was mostly based on performance and that similar steps take place every year.
Aramco has more than 70,000 employees.
Like other big oil companies, Aramco cut capital spending for 2020 after the pandemic caused an unprecedented decline in oil demand and hit crude prices. And the major oil companies reduced their numbers of workers by ten to 15 percent, in order to reduce costs and as part of restructuring plans.
Aramco said in a statement that it is adapting to a very complex and rapidly changing business environment due to the Covid-19 pandemic and that the company is constantly reviewing its operating expenses.
She added that she would not provide information on the details of any measure at the present time, but that all its procedures are designed to give it more flexibility, durability and competitiveness, with an emphasis on long-term growth. .
Bloomberg was the first to report job cuts.
Qatar Petroleum, which is one of the largest energy companies in the world, has also demobilized foreigners and cuts spending plans to cope with a sharp decline in demand for oil and gas, according to Sources in the Gaza Strip told Reuters.
Kuwait, a major Gulf oil producer, plans to halt the appointment of foreigners in its oil sector for a year, according to the Kuwaiti Oil Minister this month.
