Cairn Oil & Gas has trimmed its workforce by 300 workers in a redundancy exercise as low oil prices hit India’s largest private oil producer.
This has brought down Cairn’s employees count to 1,400 from 1,700, according to sources.
“Cairn Oil & Gas, Vedanta Ltd follows a robust performance management system and made the humane choice of delaying appraisal cycles and related exits due to the untenable situation caused by the pandemic. The recent exits are a result of organic career progression, voluntary movements, job rotations within the conglomerate, natural exits on account of annual appraisals, retirement and non-renewal of contracts,” Cairn said in response to Economic Times query.
“We will continue with our recruitment process to ensure growth and business continuity.”
Cairn’s CEO Ajay Dixit left the company at the end of May after his employment contract expired.
Cairn, which contributes about a quarter of India’s oil output, is facing a double whammy of declining production and a slump in oil prices.
Its oil and gas production fell 14 per cent year-on-year in the fourth quarter as it struggles with ageing fields. Oil and gas revenue fell 24 per cent year-on-year during the quarter.
A dramatic fall in oil prices that began in March has hurt Cairn and other oil producers.
Prices had fallen to under $20 a barrel in late April but have now recovered to $40 but are still way below $66 at the beginning of the year.
Vedanta, which is seeking to delist its shares from local bourses, reported a loss of Rs 6,732 crore on a revenue of Rs 35,417 crore in 2019-20. Vedanta also deals in zinc, aluminium, copper, iron ore and steel.
Low prices have pushed several oil and gas producers around the world to reduce capital-spending plans and cut jobs. Some oil companies have also filed for bankruptcy.