The Abu Dhabi state-owned oil company ADNOC is reported to be cutting some 5,000 jobs by the end of this year with 2,000 already carried out, reported MEED.
The job cuts come during a time in which companies across the Gulf are trying to reduce costs in the face of lower oil prices coupled with lower government spending. For reference, ADNOC has reportedly some 50,000 staff at the time of writing.
Sean Evers, Founder & Managing Partner, Gulf Intelligence commented, “My sense is that these jobs cuts at ADNOC are long overdue and would be happening even if we were still enjoying $100 oil. ADNOC’s total staff doubled over the last decade to 50,000 people, leaving many very frustrated with no obvious career path progression due to all the congestion in middle management, that is clearly going to change with the new CEO and leadership signalling a clearing out of that career gridlock. In some ways ADNOC is playing catch up when it comes to reform for in the last few years we have seen QP slash more than 25 per cent of its staff and Saudi Aramco announcing plans for an IPO.
“Like most other national and international oil companies, as an industry they have gotten away with maintaining more or less business as usual for decades as most other sectors have been dramatically reshaped, particularly most recently by disruptive technologies and the Great Recession of 2008/09. That is no longer the case as the collapse of oil and gas prices over the last two years has seen most energy companies slash head count.”
By Matthew Amlôt
© 2020 CPI Financial. All rights reserved.