Mexican oil company Pemex announced it will lay off 2,785 employees from the Exploration and Production area, the most affected by the cuts, due to it “not having the necessary resources to maintain these job posts” as a result of the lower workload derived from a drop in investments, EFE reported.
In an interview from March 2016, Pemex’s general director said that staff cuts would be necessary to ensure the company’s viability due to profitability and business strategy.
The state-owned oil company foresees it will save up to 2.8 billion pesos (nearly $160 million) with this measure, which will entail not renewing expiring contracts. Part of these nearly 3,000 layoffs started to take effect during the second quarter of the year.
The cuts and management shakeup started to show results in the Mexican company’s balance sheet, since, after eight quarters in the red, Pemex has now recorded profits over two consecutive quarters.
Pemex made 88 billion pesos in revenue between January and March of 2017, up from the 62 billion in losses recorded last year during the same period.
The company’s staff will close the year with 37,000 fewer employees than three years ago when the more drastic cuts began.