The Sarawak branch of the union said the layoffs would naturally affect the livelihoods of workers, especially those stationed in Bintulu and Miri, as the cost of living is rising in those two areas specifically.

“The oil and gas industry’s workforce faces a challenging environment, with long hours, remote deployments, and job instability,” the union said in a statement.

“Concerns about wage inequalities between local and international employees, as well as growing living costs, add to the financial and emotional strain on workers,” it said, according to Dayak Daily.

The union said it will seek to protect the rights and welfare of the over 2,000 workers it represents by advocating for reskilling and equitable compensation for affected employees.

On Thursday, Petronas president and group CEO Tengku Muhammad Taufik Aziz said the restructuring exercise was aimed at reducing costs due to falling crude prices.

He said Petronas expects to reduce its headcount by more than 5,000 people and freeze hiring until December 2026.

Deputy prime minister Fadillah Yusof later said Petronas’s restructuring exercise was due to global challenges and was not linked to its dispute with Sarawak’s state-owned gas aggregator, Petroleum Sarawak Bhd.