Malaysia's national energy company is undergoing a major transformation in response to global market pressures, including falling oil prices and the urgent need to shift toward clean energy. As part of this restructuring, the company will reduce its workforce by approximately 10%, affecting more than 5,000 employees. However, unlike many other companies' downsizing initiatives, Petronas has decided not to compromise on the well-being of its employees, a fundamental pillar of its approach.

The guidelines of its directive seek to maintain consistency with the holistic and wellness-oriented approach to its workforce that has characterised it to date. Petronas has therefore committed to treating all affected employees with fairness and dignity. In a public statement, the company confirmed that “affected employees will receive market-competitive severance pay that will exceed the minimum legal requirements.” This compensation will be classified according to the length of service and category of the employees.

Employees leaving the company will have access to career transition services, including job search support, career counseling, financial planning advice, and emotional support. Skills enhancement programmes, medical assistance, and retraining will also be offered, reflecting a people-centred approach to change management.

To support this process, Petronas has established a transition council and people development committees. These bodies will oversee talent identification and coordinate redeployment decisions using transparent and collective decision-making frameworks. Petronas has also ensured full compliance with legislation through consultations with the Malaysian Ministry of Human Resources.

Helping laid-off employees maintain career continuity

During this transition period, Petronas is collaborating with PERKESO through MyFutureJobs to identify employment opportunities for affected employees in other sectors. Discussions are underway with other public companies, including those in the oil and gas sector, for potential placements.

For those exploring new initiatives, Petronas' Innovation Garage offers business guidance and funding avenues. This strategy enables employees to explore self-employment or starting their own business with structured support.

Even amid job cuts, Petronas continues to invest heavily in building a resilient and empowered workforce. This is evident in initiatives led by its subsidiary, PETRONAS Chemicals Group Berhad (PCG), which is doubling down on employee engagement, well-being, and development. Here's a look at how PCG is pursuing its people strategy.

Workplace flexibility and supportive culture

In the last years, PCG has introduced flexible working arrangements to promote balance and engagement. Initiatives such as flexible working hours (FWH), compressed work week (CWW), and adjusted working hours for pregnant women are designed to accommodate employees' personal and family needs.

The company also offers financial assistance to employees with children with special needs, reinforcing its philosophy of workplace inclusion. Daycare centers, nursing rooms, and recreational facilities on company premises further contribute to work-life balance.

Special leave, such as maternity leave (90 days), paternity leave (5 days), family leave, and religious holidays, are designed to reduce stress and foster a sense of belonging.

Mental health as a business priority

PCG has also maintained a strategic approach in menthal health issues. The Employee Assistance Program (EAP), complemented by the digital coaching platform “myFriend,” offers confidential support to those facing personal or professional stress.

PCG also has a five-year wellness plan focused on physical, social, and mental health. These initiatives are not only intended to support people in crisis, but also to foster long-term resilience and well-being in the workplace.

The flagship i-C4RE (Individualised Coaching for Resilience Enhancement) program and the MIND-A-CARE network have reached thousands of employees, with trained facilitators and ambassadors providing early intervention and peer support.

PCG also offers digital self-learning tools, mentoring, and practical work experience tailored to individual development plans. Collaboration with universities, industry institutes, and training centers ensures that PCG employees remain at the forefront of a rapidly evolving sector.

Diversity, inclusion, and belonging

PCG has embraced cultural and demographic differences and maintains a zero-tolerance policy toward discrimination of any kind. Female leadership initiatives, support for returning to work, and inclusive policies help create a workplace where everyone can thrive.

Social cohesion has been another focus for the company, through the creation of employee clubs such as the PETRONAS Sports and Recreation Club and PETRONITA (PETRONAS Wives and Women Employees Association). These forums build community and foster a common purpose beyond the office.

The company recorded a 13% reduction in mental health-related costs in 2022 (approximately RM4 million), along with an estimated social return on investment of RM15 million. In addition, 96% of employees return to work after parental leave, which is a clear indicator of job satisfaction and loyalty.

The company has also received external recognition, including the LinkedIn Talent Award, for its leadership in diversity and inclusion.