South Africa’s state oil company PetroSA plans to reduce its workforce by up to 40 percent because of declining revenues and slow progress on its oil refinery project, Business Day newspaper reported on Monday.

The newspaper said PetroSA, which has been in talks with trade unions representing its 1,800 employees, is expected to carry out the retrenchments in phases. The oil firm was expected to provide details later in the day, the newspaper said.

“This is part of the company’s cost-containing measures. It was the last resort in a series of planned measures,” Business Day quoted PetroSA’s vice president of corporate affairs Zama Luthuli as saying.

When reached by Reuters for comment, PetroSA spokesman Thabo Mabaso referred queries to Luthuli, who was not immediately available.

PetroSA sells petrochemical products to South Africa´s major oil companies and also exports to international markets. The company operates the world’s first, and third largest, gas-to-liquid refinery at Mossel Bay.

Source: Reuters