Introduction to Pemex and its Current Situation
Petróleos Mexicanos (Pemex), Mexico’s state-owned petroleum company, is implementing a staff reduction plan as part of its corporate restructuring. The company announced on Wednesday that it will cut approximately 1.4% of its confianza (trusted) staff, which amounts to around 360 individuals. This represents only 0.28% of its total workforce of over 129,000 employees.
Background on Pemex’s Restructuring
Pemex’s restructuring stems from a constitutional reform in industries of strategic importance, passed in March. This reform aims to vertically reintegrate Pemex as a public company, moving away from its previous status as an “enterprise productive of the State” under the 2013-2014 energy reform.
Details of the Staff Reduction Plan
The staff reduction plan targets support administrative areas without affecting essential operations. Pemex has already taken steps to contain and optimize spending on personal services, such as canceling vacant positions and implementing administrative measures.
- Scope of the Reduction: The reduction in headcount aims to strengthen the value chain, eliminate redundant functions and positions, redirect resources towards substantive operational activities, and optimize public spending.
- Impact on Workforce: Out of the total workforce of 129,198 employees, approximately 25,840 are confianza staff. The planned reduction represents a minor fraction of this group.
- Financial Projections: Pemex estimates savings of around 3,532 million pesos for 2025 and 1,266 million pesos for 2026. These savings correspond to 9.41% and 12.78%, respectively, of the federal budget allocated for permanent confianza positions.
Pemex’s Financial Performance
Despite the staff reduction efforts, Pemex’s financial situation remains challenging. In the first quarter of 2025, the company reported a 2.5% decrease in sales, totaling 395,590 million pesos. Moreover, Pemex incurred net losses of 43,329 million pesos, although it generated an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 124,384 million pesos.
Key Questions and Answers
- What is Pemex’s staff reduction plan about? Pemex plans to cut around 1.4% of its confianza staff, which amounts to approximately 360 individuals. This reduction aims to strengthen the value chain, eliminate redundancies, and optimize public spending without affecting essential operations.
- Why is Pemex implementing this staff reduction plan? The restructuring stems from a constitutional reform in industries of strategic importance, which aims to vertically reintegrate Pemex as a public company. This change in status seeks to move away from its previous designation as an “enterprise productive of the State” under the 2013-2014 energy reform.
- What are the financial projections from this staff reduction plan? Pemex estimates savings of around 3,532 million pesos for 2025 and 1,266 million pesos for 2026. These savings correspond to 9.41% and 12.78%, respectively, of the federal budget allocated for permanent confianza positions.
- How is Pemex’s financial performance currently? Despite staff reduction efforts, Pemex faces financial challenges. In the first quarter of 2025, the company reported a 2.5% decrease in sales and net losses of 43,329 million pesos, although it generated an EBITDA of 124,384 million pesos.
