Several Saudi Aramco employees have reportedly resigned over concerns about potential benefit cuts.

According to local reports seen by the Saudi Gazette, an unspecified number of Saudi Aramco employees have resigned due to concerns that proposed budget cuts could impact allowances and incentives.

Saudi Aramco denied reports that its HR executive director and personnel manager are seeking early retirement.

The company has not commented further on the matter.

Saudi Aramco has not publicly announced cuts to employee allowances or benefits.

However, low oil prices prompted the Saudi government to cut pay and other benefits for public employees in an effort to cut costs.

According to CNN Money, the oil-rich kingdom has cut bonuses, paid holidays and other benefits including the use of government cars as part of the austerity plan.

Government ministers also saw their pay drop by 20 percent under the plan while  members of the Shura council, advisory body, took a 15 percent pay cut.

About 70 percent of Saudi nationals are employed by the kingdom’s government.

Despite the budget strain, Saudi Aramco has boosted its investment spend as part of a broader effort to diversify the kingdom’s economy and encourage job creation.

Saudi Aramco vice president for procurement and supply chain management Abdulaziz al-Abdulkarim said last month that company plans to invest about $334 billion by 2025.

That investment level is up from the $300 billion the company said it would spend over the same period of time when it announced the In-Kingdom Total Value Add (IKTVA) plan last year.

Saudi Aramco’s plan calls for 70 percent of the energy-related goods and services related to the IKTVA to the to be locally produced by 2021.

Saudi Aramco has also confirmed that it will move forward with an initial public offering plan that was announced earlier this year.

Saudi Aramco CEO Amin Nasser said earlier this month that his firm is likely to list its highly anticipated initial public offering in 2018.

According to Reuters, Nasser added that Saudi Aramco plans to offer up to a 5 percent stake through the IPO and is still considering all markets for the listing.

Nasser told Bloomberg earlier this month that the IPO will sell shares in Saudi Aramco’s entire business.


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