Thread regarding Saudi Aramco layoffs

The Oil Patch is Laying off People Again

https://finance.yahoo.com/news/oil-producer-apa-cuts-15-140928798.html

Usually, the US and European IOCs (XOM, CVX, BHP) start laying off employees before NOCs (including Aramco) do.

With tariffs/counter tariffs and sanctions on the rise, the global economy will hihgly likely deteriorate. It is already decelerating. Oil demand is weakening (unless the economic trade wars are quickly addressed and renegotiated). The Oil & Gas industry is mature and the only way to survive an economic melt-down like this is through consolidation and lots of cost cutting. We witnessed this last year with the layoff of 13,000+ employees of CVX and BHP. From the article above, the other large independent giants like Apache are continuing the trend. If this trade war is left without any resolution, NOCs like Aramco, with a high probability, will be laying off people.

For an entity like Saudi Aramco that is now a publicly traded company, the word lay off is now a common jargon in its dictionary. Gone are the days of its private solitude where it could not care more about what the outside world thinks. Every line item in its expense reporting on the financial statement will be scrutinized and addressed.

For expats, Western/Eastern, you will see your benefits continue to erode. Expect your repatriation benefits be further diced and reduced by region of origin. Next, it will be your salaries. Salaries are trending lower globally in the oil patch and Aramco will benchmark against that. If you are grandfathered in the old scale, you won't see significant increases (flatlined), and you will feel that inflation will be eating you up especially in KSA where inflation is much higher than those in the US / EU. Obviously, there are tax treaties with different countries that shield your earnings, but the local government has found ways to circumvent that through charging higher fees on resident visas, Bahrain causeway, etc. and more will be conjured to shore up finances for the kingdom. The next cost cutting will be seen in medical benefits, pension, and 401k. Medical benefits could be outsourced (vs. self-insured). There should not be a surprise if Aramco removes pension altogether and 401k matching diminished. It is not that Aramco pre-conceived these adjustments. It is just that it is now benchmarked against the industry it operates in. Look at the rise of EV. Tesla sold 1.8 million vehicles last year vs some years ago of 250k vehicles. Toyota sold less ICE (Internal Combustion Engine) vehicles this year than 5 years ago). There is a global push for renewable energy, adaptation and skill diversification. Hence, demand for oil is on the latter end of the plateau and in some segment of the industry, declining.

With this writing on the wall, it is important for anyone working in the Oil industry to start thinking about another industry that is growing. Reposition/reinvent yourself. Get out now before it is too late. For the younger folks in their 30s, you need to take a long hard look at your chosen career if it makes sense to transition now even if it is hard in the short-term, but in the long-term, you will be better off. I know many friends who started in the Oil patch several years ago and made conscious decisions to change track/or transitioned to other industries. They are much happier now. I know one who went to management consulting (McKinsey). I spoke with him a year ago and the things I outlined above reflect his thinking as well.

So, good luck to those, not only in Aramco, but in the O&G industry!

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| 2871 views | | 6 replies (last March 26, 2025) | Reply
Post ID: @OP+1jptzk97d

6 replies (most recent on top)

Nobody cares

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Post ID: @12q+1jptzk97d

They’re making a list,
Checking it twice,
Deciding our fates
With a spreadsheet of ice.

No bonus, no cheer,
Just “thanks” and a shove —
Happy layoffs to all,
And good luck, sort of love!

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Post ID: @zb+1jptzk97d

Aramco total compensation package for new comers is significant less tha it used to be. I dont know why people are still interested in this Company.

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Post ID: @vv+1jptzk97d

Don't wind your expat experience up with big ticket material purchases. Be practical in all you do and acquire because it all has to be unwound before you leave...which could be at any time really for any of many reasons. Generations of locals have earned a living wheeling and dealing in expats looking to sell quick. Enjoy what you can but always be ready to exit. All the while hoarding your cheese, banking all you can in the process.

The oil patch has always been bo-m and bust, my entire career since 1984. Just not in KSA. Aramco has just now come to that business model/ mindset. Aramco used to get expat talent and try to hang on to it because it was difficult to acquire. A buyer's market these days and forever more.

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Post ID: @pv+1jptzk97d

Just about every expat employee at Aramco knows there's very little job security.

The mindset and work culture cannot change, so don't try to. But it can change you for the worse going back to work in the real world. Not everyone will retire from work with the company as often you'll ready here.

Here's my biggest lesson to share here. Enjoy each day and the good moments you wil have. Always be prepared to go quickly, and very quickly, when your time is up.

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Post ID: @pg+1jptzk97d

The good employees, those marketable and due to competency are gone and gainfully employed elsewhere or retired and care free. Good luck to those left behind…

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Post ID: @n6+1jptzk97d

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