Sapura Energy cut staff by 20% amid weak oil market

Malaysian oil and gas services company Sapura Energy is set to reduce its workforce by 20% in a bid to cut costs amid the coronavirus (Covid-19) crisis.

The redundancies will involve 63% contractual workers and 37% permanent employees. The company has around 4,000 full-time employees.

The move comes in the wake of multiple other attempts by Sapura Energy to adjust its cost structure recently, including salary cuts and other initiatives out of the total 136 cost-cutting initiatives identified by the company.

Sapura Energy president and CEO Tan Shahril Shamsuddin said: “With a heavy heart, we would like to inform you that we are currently meeting several colleagues, at every job level, to discuss their departure from the company.”

“We have spoken previously about the need to implement austerity measures to sustain our business.

“While a lot of work has been done to grow revenue and improve the way we operate, the economic slowdown brought by Covid-19 and oil price volatility continues to bear upon our financial strength.”

“In our previous announcement, we had mentioned the need to reduce the workforce. As much as we tried to delay this decision, it is inevitable at this point.”

In April this year, Sapura Energy announced salary reductions affecting a third of its working personnel.