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Abu Dhabi National Oil Company (ADNOC) plans to cut 5,000 jobs by the end of 2016, with 2,000 employees having been laid off since the year began, MEED reported, citing industry sources.
The state-owned oil producer had a staff of nearly 55,000 at the start of 2016. The planned job cuts would reduce the company’s headcount by just over 9 percent.
Oil producers in the region have looked to cut costs as crude prices declined from over $100 per barrel in mid-2014, to current prices in the mid-$40 range.
“In keeping with the entire oil and gas industry, ADNOC is constantly looking at ways to be more efficient and profitable, particularly in the current market environment,” an ADNOC spokesperson was quoted as saying by MEED. “This is in line with our strategic goals of efficiency, profitability and performance.”
The company has undergone widespread changes in 2016. Sultan al-Jaber was appointed director-general in February, replacing Abdullah al-Suwaidi who held the position since 2011. Last week, the company replaced CEOs at six of its operating companies.
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