Mexico’s state oil company, Pemex, plans to cut 3,000 jobs as part of a restructuring effort to reduce expenses and increase oil and gas production, Bloomberg reported, citing a company document.
The restructuring aims to save about $540 million by shifting over $300 million from personnel costs to the exploration and production departments. It will also simplify the company’s structure by closing three sub-directorates and nine management areas to streamline operations.
Pemex posted a $2 billion loss in the first quarter of 2025. While still negative, this was a significant improvement compared to a $9 billion loss in the final quarter of 2024. Both results contrast with profits in the same periods a year earlier, showing Pemex’s ongoing financial challenges.
The company blames falling production and sales for the losses. Production dropped 10% in 2024, while operating costs rose and asset values fell. To reverse the decline, Pemex said it plans to reopen old wells.
Pemex operates over 31,000 wells nationwide, onshore and offshore. About one-third are currently idled. Of these, roughly 4,800 can be restarted but at a cost. The production drop is hurting exports, which fell 44% in January 2025—the lowest level since 1990.
Pemex expects daily production to reach 1.58 million barrels this year, down from 1.65 million barrels at the end of 2024. The Mexican government aims to raise output to 1.8 million barrels daily.
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