An internal Pemex document dated May 2025 proposes laying off over 3,114 tenured employees, saving roughly 10.5 billion pesos as part of President Sheinbaum’s strategy to stabilize finances.
Petróleos Mexicanos (Pemex), the world’s most indebted energy company, is moving forward with a broad restructuring aimed at slashing costs and reducing its massive debt burden, according to a May internal document reviewed by Reuters.
The document, circulated within the company in early May, refers back to an April proposal that would cut as many as 3,114 tenured positions—approximately 2.5% of Pemex’s total workforce—and generate annual savings of about 10.5 billion pesos (around $543.4 million).
In addition to workforce reductions, the plan calls for the elimination of three sub-directorates within the exploration and production division, the closure of nine management areas, and the consolidation of overlapping job functions to streamline decision-making.
The May document stops short of confirming or denying the exact headcount or savings figures from the April draft, suggesting the proposal has evolved. Two sources with direct knowledge of the restructuring told Reuters the plan has “significantly changed” since the initial version.
It does, however, explicitly ratify a leadership shake-up in Pemex’s exploration and production arm: Angel Cid Munguia is set to replace Nestor Martinez, who unexpectedly departed earlier this spring.
Pemex did not respond to multiple requests for comment on the restructuring or staffing proposals.
The overhaul comes as Pemex wrestles with a debt load exceeding $120 billion—more than 7% of Mexico’s GDP—making it the most indebted oil company in the world. Experts warn that without dramatic cost cuts, the firm’s heavy interest-service obligations could jeopardize Mexico’s broader fiscal health.
President Claudia Sheinbaum has prioritized Pemex’s financial stabilization since taking office in late 2024. In November, she unveiled a new fiscal regime for the company—simplifying its tax structure under a single “Derecho Petrolero para el Bienestar” levy and announcing austerity measures aimed at saving some 50 billion pesos over two years.
The need for savings is underscored by Pemex’s recent financial results: in the first quarter of 2025, crude and condensate production fell 11.3% year-on-year to 1.6 million barrels per day, contributing to a net loss of 43.3 billion pesos ($2.12 billion).
Analysts caution that while layoffs and administrative cuts may deliver short-term relief, they risk provoking conflict with Pemex’s powerful unions, which represent more than 80% of its roughly 130,000 workers. The company last settled collective bargaining in July 2024 with a 5% wage increase and 2% rise in benefits, signaling labor’s willingness to negotiate—so long as jobs remain intact.
The proposed restructuring also aligns with a broader energy reform passed by Congress in February, which grants Pemex greater freedom to form joint ventures with private partners without a bidding process. While intended to attract foreign investment into new projects, some industry observers argue that deeper institutional reforms are needed to complement cost cuts and restore the company’s competitiveness.
Next steps include formal approval by Pemex’s board of directors—on which the finance minister sits—and potential review by the Energy Ministry, which oversees the state oil company. Market watchers will be closely monitoring bond yields and credit-rating agencies for any immediate reaction to the proposed cost-saving measures.
