PETALING JAYA: Sapura Energy Bhd has announced internal austerity measures to mitigate the impact of the Covid-19 pandemic and the resulting low oil prices.
In a note to employees, president and group CEO Tan Sri Shahril Shamsuddin said the leadership team will be taking a 50% cut in salaries with immediate effect.
The austerity measures also include readjustment of employees’ salaries between 5% to 45% across the board effective after Ramadhan; and the reduction of workforce.
“In the past year, we have done a lot of work to strengthen the company, including growing our top line and improving efficiencies in the way we operate. However, COVID-19 and low oil prices have impacted our financial strength. To sustain our business, we need to implement immediate austerity measures to preserve our cash flow,” he said.
He added that the group would ensure that those with lower income are less burdened by the cuts, but acknowledged that the decision may be hard on many employees.
Shahril also assured his employees that the leadership has built an agile strategy to navigate Sapura Energy out of this storm, which has adversely impacted many other businesses.
“The industry landscape will be tough moving forward but if we maintain our resilience, we will come out of this leaner and stronger,” he said.
source https://www.thesundaily.my/business/sapura-energy-announces-internal-austerity-measures-BF2340146
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