State-run oil and gas companies have reduced their workforce by 14% over a span of six years, cutting 15,700 jobs, even as their revenues nearly doubled. According to data from the oil ministry, the headcount at these companies dropped from 110,000 to 94,300 by the end of the 2022-23 fiscal year.
Job Cuts Disproportionately Affect Non-Managerial Positions
The job cuts in state-run oil and gas companies have affected non-managerial positions more severely. While the refineries only reduced their workforce by 3%, the exploration and production, marketing, and research and development (R&D) segments saw job cuts ranging from 20% to 24%. In contrast, employment in the pipeline business actually increased by 7%.
Disparity in Job Cuts between Managerial and Non-Managerial Positions
The reduction in executive or managerial jobs was relatively lower at 6%, while non-managerial positions, including supervisors, clerks, and workmen, experienced a significant decline of 25%. The exploration and production segment saw the most acute drop in managerial jobs, with a decrease of 27%. However, managerial positions in refineries increased by 15%, while R&D divisions saw a decline of 16% in managerial jobs.
Increase in Share of Managerial Jobs
The share of managerial jobs in total employment at state oil firms increased by 5 percentage points, rising from 54.5% to 60%. This increase was observed in the refining (8 percentage points), R&D (3%), and marketing (16%) segments. However, the exploration and production sector experienced a decrease of 5 percentage points in the share of managerial jobs.
Factors Contributing to Job Cuts
Several factors have contributed to the decline in direct employment at state-run oil companies. These include increased outsourcing, higher adoption of technology, a surge in retirements (especially during the COVID-19 pandemic), and limited replacements. These factors have led to a shift towards greater efficiency and the need to outsource certain job functions.
Employment Statistics at Specific Companies
As of March 2023, Indian Oil Corporation employed 28,000 individuals, while ONGC employed 24,000. The share of executives or managers in total jobs was 58% at Indian Oil and 60% at ONGC. The exploration and production sector employed the largest number of individuals in the oil industry, accounting for 28% of total employees in March 2023. The refining and marketing sectors accounted for 26% and 25% of total employees, respectively.
