Byco Pakistan plans hundreds of job cuts due to oil slumpArchive
KARACHI: Pakistan’s Byco Petroleum Pakistan Limited is planning to lay off hundreds of employees to reduce costs due to the global plunge in oil prices and shrinking profits, a company spokesman said on Friday.
“In view of current oil market slump, the company is going to lay off hundreds of both regular and contractual employees,” Imran Ghaznavi, a spokesman for Byco told Reuters.
“The company would be saving around Rs100 million per month in cost cutting measures,” he added, declining to put a figure on the losses the company was suffering.
“Byco has decided to reduce internal costs in multiple operating units as well as at the head office, which includes right sizing,” the company said in a statement.
“A detailed exercise has been conducted and now is being put in place to adopt across the board initiatives focusing on increasing synergies across various companies and operating platforms, reducing costs and supporting business priorities.”
Headquartered in Karachi, Byco is engaged in the business of oil refining, petroleum marketing, chemicals manufacturing and petroleum infrastructure and logistics.
Crude oil prices have tumbled over 70 per cent since mid-2014, squeezing the revenues and capital expenditures in the oil sector, which has reacted with cost cuts wherever possible, be in overheads, operating costs, research and development or cash outlays like capital expenditures, to conserve cash flows for future dividend outflows, statement said.
Global oil layoffs exceed 100,000 and leading energy companies have announced spending cuts of more than $40 billion and assured investors they are ready to tighten further if the market does not recover significantly, the release added.
Published in Dawn, February 27th, 2016