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China Petroleum Plans Massive Layoff

State-own China National Petroleum Corporation (CNPC) is estimated to be cutting up to 10,000 employees in the Beijing area alone by the end of October, reported Xinhua.   This year is considered the most difficult year for both CNPC and Sinopec.  CNPC’s August 28 interim report shows a 39% decline in pre-tax income from the previous reporting period.  On July 25, CNPC indicated that company-wide layoffs would reach 80,000 in the next three years.  The move was viewed as one to control cost and loosen financial pressure.  The company’s Tianjin and Hebei subsidiaries have already started layoffs, with Beijing to follow in October and Shanghai next year.  Northeastern China will be the last since it is CNPC’s major base.  To prevent employee complaints, a group of senior officials close to retirement has been tasked with implementing the downsizing.

Source: Xinhua, September 4, 2008