(Adds analyst comment, CNPC first among state giants to cut)
BEIJING Dec 14 China National Petroleum Company
plans to cut staff at its Beijing headquarters by 20
percent, the company said in a post on its social media blog on
Tuesday, the latest move in an efficiency drive by the country's
top state energy group.
The staff reduction plan is the first among Chinese state
energy giants amid a 2-1/2-year oil price rout that has forced
global energy peers to roll out sweeping cost-cutting measures
as profits sank.
The staff cut will be completed by March next year, with
some employees relocated to specialized business units.
The move will also reduce the number of departments at the
headquarters. Some divisions will be merged, such as the quality
and standards supervision departments, which will be combined
into one, the report said.
"This is consistent with the Chinese government's reform
drive to streamline state-owned enterprises, with a focus on
profitability," said Gordon Kwan of Nomura Research.
"CNPC takes the lead as it's under greater cost-cutting
pressure compared to Sinopec, which has enjoyed decent refining
and petrochemical margins thanks to lower oil prices," said
Company press officials were not immediately available for
comment. CNPC is parent of PetroChina.
Earlier in 2016, CNPC carried out a major restructuring,
including selling $11 billion worth of financial assets to a
listed unit, and announcing plans to transfer its oilfield
services business into another listed unit.
(Reporting by Chen Aizhu and Meng Meng; Editing by Tom Hogue)