Chevron to lay off 1,200 employees
Wednesday, February 3 2016 - 01:35 AM WIB
PT Chevron Pacific Indonesia plans to lay off 1,200 employees, as a result of continued decline in oil prices.
Upstream Authority SKK Migas Head Amin Sunaryadi said that the job cuts will be carried out through several mechanisms, including voluntary resignation and early retirement.
"The layoff will be done in stages starting in 2015," he added.
BP Indonesia also plans to cut its employees, but the number is not large, Amien said.
Director General of Oil and Gas IGN Wiratmaja confirmed that Chevron plans to cut the number of its workers, while noting however that there aren?t other PSC holders which plan to follow suit.
?We already talked (about layoffs) with our big PSC holders. Most of them have no layoff plan, except for Chevron. The firm plans to merge its separate organizations in Kalimantan and Sumatra which results in position overlaps,? Wiratmaja said in a statement.
In implementing the organizational merger, the government asked Chevron to optimize the existing employees. If the company plans to reduce the number of its workers, the plan should be carried out in a natural way such as releasing workers who have reached retirement age.
Editing by Johannes Simbolon