Friday, August 01, 2008

CNPC Layoffs will be more than 80,000 people


Recently, the General Manager of China National Petroleum Corporation (CNPC) said in the next three years cut 5 percent of the total staff. According to the official website of oil statistics, in 2007 the total number of employees in the oil for 1.673 million people, as the base, the total number of layoffs will be more than 80,000 people.

The five percent reduction in staff will not affect oil companies in-house staff to the stability. Because, including the reduction of several aspects, one is the retirement of the natural way to reduce the second is the new import control; Third, it is part of contract workers could be fired after the expiration of the fourth through the merger of a number of positions to reduce personnel.

In addition to reducing staff salaries and standardized distribution system to better control personnel costs, the oil will be compressed in the day-to-day non-productive expenditure. Have asked the companies not allowed to purchase new, lease or purchase of luxury cars in disguise, no new Loutangguansuo to reduce various kinds of large-scale celebrations and ceremonies, conferences, competitions and group tours abroad, effective Yajian Hospitality , Travel and maintenance in office, the provisions of these costs on the basis of last year to reduce the more than 10 percent. Economic analysts believe that enterprises operating profit decline in oil has affected the normal cash flow, and the compression of the cash expenditure must be the cost, can ease tensions in the oil cash flow pressure.

PetroChina expects 2008 capital expenditure to 207.9 billion yuan, of which exploration and development capital expenditure of 132.3 billion yuan. Will be more funds for investment in oil and gas business, in the existing oil has 49 investment projects in the planning and make stops, Huanjian or transferred, by dealing with investment, investment funds reduced 20.72 billion yuan. At the same time, in oil also plans to issue 60 billion yuan of corporate bonds in order to meet production needs, reduce financing costs, additional liquidity.

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