Petrobrazi refinery owned by OMV Petrom. Photo source: Dreamstime.com
Cristina Verchere, the CEO of OMV Petrom, the largest oil and gas producer in Romania, but also in the region, confirmed for Profit.ro that the job cuts have already started, reports News.ro.
“Regarding workforce reductions, we assure you that we are looking at the cost challenges. We are looking at the transition to a lower oil price environment. And we have, as we mentioned, programs to increase cost efficiency, which includes looking at the size of the workforce.
I've already made some cuts. We estimate a reduction of approximately 1,000 positions, of which we are already at half, most of which will be achieved this year, but a part will be achieved in 2026 and 2027. Yes, we continue to do this and we are working on many measures, already in the process of implementation”, the CEO conveyed to investors.
The total savings target is approximately 150 million euros, to be achieved by 2027 compared to 2024. This includes personnel, services, simplification, automation.
Profit.ro reported in September that OMV Petrom may lay off approximately 1,000 employees, following a restructuring decision taken by its main shareholder, the Austrian group OMV.
At that time, OMV Petrom said that it does not comment on the figures regarding personnel restructuring at the company level, but gave assurances that any layoff measures will be decided according to the law and after consulting the unions.
The hydrocarbon sector is going through an extensive process of global reorganization, with the Financial Times announcing in the fall that ConocoPhillips also intends to cut its workforce by a quarter by the end of next year, as a result of fears that an increase in production by the OPEC cartel will cause a sharp drop in prices. This is after the giant BP announced last month that it will reduce the number of employees, currently at 40,000, by at least 15%. And Chevron presented in February a plan to reduce its workforce by a fifth.
The restructuring decided by OMV is a smaller one, with 2,000 of the 23,000 employees (8.7%) going to leave the group, according to the Austrian press. 400 of them will come from the elimination of some positions in Austria, where the company has 5,400 employees. The percentage on Austria (of 7.4%) is lower than that on the whole group.
As 44% (10,158 people) of the group's employees are employed in Romania, it is likely that the number of layoffs will be around 1,000 people.
OMV Petrom increased its number of employees by 25% (more than 2,000 additional employees) in the last year, mainly as a result of internalization of certain operations and maintenance activities in the exploration and production division, reaching 10,158 employees in the middle of this year, from 8,098 employees in the middle of last year. The Romanian company will decide who will leave the group.
The management in Vienna usually proposes a target figure, and the subsidiaries actually deal with the restructuring program, which they then send for approval. Following further additional negotiations, the restructuring programs of each subsidiary are approved. The remaining approximately 600 will come either from subsidiaries in areas where OMV has reduced its presence, or from its refinery in southern Germany or Slovakia.
Photo source: Dreamstime.com
