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| China's largest gas producer CNPC to cut workforce |
| Press Trust of India / Beijing Jul 26, 2008, 13:10 IST |
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China's largest oil and gas producer, CNPC, plans to cut five per cent of its workforce in the next three years to control costs after its profits plummeted, state media reported.
The China National Petroleum Corporation employed 1.67 million people last year, and the job-cut plan would ease out 80,000 people.
The companys listed arm PetroChinas first quarter profit fell 31.5 per cent, hit by losses incurred in refining operations and increased windfall taxes payment, the state-run China Daily said.
CNPC General Manager Jiang Jiemin announced the plan at the recent annual general meeting of company executives in Yanan in Shaanxi province, the report said.
The company had earlier said it would cut office costs and spending on entertainment and travel by at least 10 per cent this year and also not approve rental or purchase of luxury cars or construction of new buildings or hotels.
It said it would also limit spending on parties and ceremonies and cut back on meetings and overseas trips.
Refineries under CNPC and the countrys largest refiner Sinopec suffered losses of 57.1 billion yuan in the first half of 2008, 47.9 per cent more than a year earlier, according to China Petroleum and Chemical Industry Association.
Sinopec has said its net profit for the first half would fall by over half as the wide gap between soaring crude prices on the international market and the state-regulated low prices of refined oil products domestically had adversely put its refining business "deeply in the red."
The government had increased the prices of gasoline and petrol by 1,000 yuan per ton but even this could only help partly offset the losses, according to analysts.
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