Sinopec staff cuts said to cost $217m

15 January 2001 00:00  [Source: ACN]

Sinopec's efforts to reduce its workforce is reportedly expected to cost the company Rmb1.8bn (US$217.5m).

Media reports quoted chairman Li Yizhong as saying this but Sinopec issued a statement last week saying it was 'not able to comment on the accuracy of the amount'. It added that it did not expect the staff cuts to 'result in any material adverse change in the financial position of the company and its subsidiaries'.

Sinopec confirmed that it will reduce its workforce by about 27 000 in 2001. This is part of a larger plan to cut its staff by approximately 100 000 over the next five years. The cuts will be made through retirement, voluntary resignation and/or redundancy.

Sinopec also intends to gradually shut down certain small and inefficient oil refinery and petrochemical facilities.

The staff reductions and shutdowns are intended to improve the overall efficiency of the company.

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