PetroSA says it is re-organising its business in order to enhance operational efficiencies, but role players in the company could not confirm the possibility of retrenchments.
Group CEO Nosizwe Nokwe-Macamo mentioned in a confidential memo to the trade union CEPPWAWU, which was leaked to the media, of declining revenue and slow progress on its oil refinery project, that may lead to a headcount reduction of up to 40% of its workforce.
PetroSA currently employs 1 844 people
In a press statement by the Group Communications Manager, Thabo Mabaso it is stated that PetroSA is in the midst of challenging market conditions.
Mabaso says this has been caused by an ongoing feedstock challenge at PetroSA's Mossel Bay Refinery that has seen the company operate at sub-commercial levels.
He said that PetroSA has not been immune from the impact of external factors such as the slump in the oil price and the resulting declining revenues.
However, Mabaso made it clear that the company is in the process of communicating to their employees.
He told Algoa FM News that if retrenchments are made, it will be the last solution they consider.
