The cascade of layoffs across industries shows no signs of slowing down. In the past six years, Indian oil and gas PSUs have witnessed a significant reduction in their workforce, slashing around 15,700 jobs. This trend unfolds amidst a notable increase in revenue for these PSUs. The downsizing in employment numbers can be attributed to various factors, including technological advancements, automation and efficiency measures undertaken by these organisations. Despite the reduction in workforce, the revenue of these PSUs has doubled during the same period, indicating improved operational efficiency and cost management strategies.
According to data from the oil ministry, the workforce at state-owned oil and gas firms decreased to 94,300 by the conclusion of 2022-23, down from 110,000 six years earlier. Within the last six six years, the exploration and production, marketing, and R&D divisions experienced a reduction of 20-24% in jobs, while refinery roles saw only a 3% decline. However, employment in the pipeline sector witnessed a 7% increase.
The decline in job numbers comes at a time when the oil and gas sector is undergoing significant transformation, characterised by technological advancements and shifts towards renewable energy sources. These changes have necessitated a reevaluation of workforce requirements, leading to restructuring and downsizing initiatives within the sector. Additionally, the economic impact of the COVID-19 pandemic may have also contributed to the workforce reduction, as organisations seek to optimise resources and mitigate financial challenges.
Major companies such as Indian Oil, ONGC, HPCL, BPCL and Gail remained unavailable for comment.
While the reduction in jobs may raise concerns about unemployment and job security, it also reflects the industry’s efforts to adapt to changing market dynamics and remain competitive in a rapidly evolving landscape. As the oil and gas sector continues to undergo transformation, it is essential for organisations to balance workforce optimisation with employee welfare and support mechanisms. This entails investing in upskilling and reskilling initiatives to ensure employees remain relevant in the evolving industry landscape.
By the Numbers:
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- The workforce in oil and gas PSUs reduce from 1,10,000 to 94,300 in the last 6 years
- 15,700 job losses in 6 years
- Executive jobs fell by 6%
- Non-managerial jobs dropped by 25%
- The exploration and production, marketing and R&D segments scrapped 20-24% of their jobs
- The sectors exploration and production, refining and marketing employ 28%, 26% and 25% of the total workforce
- Refineries reduce employment by 3%
- Employment in the pipeline business sector saw a 7% increase
- Revenue surged 2X during the same period
In conclusion, the reduction in jobs within Indian oil and gas PSUs over the past six years underscores the sector’s efforts to streamline operations and enhance efficiency amidst changing market dynamics. While the downsizing may pose challenges for affected employees, it also reflects the industry’s resilience and adaptability in the face of evolving technological and economic trends. Moving forward, it is crucial for organisations to prioritise workforce development and welfare to navigate the transition towards a more sustainable and competitive future.
