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China National Petroleum Company (CNPC) is reportedly cutting staff at its headquarters as part of a cost-savings plan.

In a social media post seen by Reuters, CNPC said it will reduce its headcount at its Beijing headquarters by 20 percent.

The reduction is expected to be completed by March 2017.

An undisclosed number of staff will be placed in the company’s specialized business units, Reuters said.

The headcount reduction is also expected to reduce the number of departments at the company’s headquarters, with some of those reductions occurring through the merger of departments.

CNPC plans to combined the quality and standards supervision departments into one department, Reuters said.

Earlier this year, CNPC approved plans to restructure its oil services business as two years of low prices squeezed the company’s upstream revenues.

According to CNPC’s 2015 annual results, the company earned $290 billion (2.016 billion RMB yuan) in operating income and a total profit $11.95 billion for the full year.

CNPC’s domestic oil production hit 111.43 million metric tons in 2015 while the company’s domestic gas production was 95.48 billion cubic meters for the full year.

President of the People’s Republic of China Xi Jinping has focused on rooting out corruption at state-owned firms, including CNPC.

Last year, former CNPC chief Jiang Jiemin was sentenced to 16 years in prison after he pleaded guilty to several of corruption charges.


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