Pemex approves spending cut for US$15.4 billion

The Board of Directors of Petróleos Mexicanos (Pemex) approved a spending cut for 234.98 billion pesos (US$15.4 billion), nearly four times more than the spending cut for 62 billion pesos (US$4 billion) announced by tax authorities due to the fall in oil prices.

For this reason the company will not cover the positions left by retired workers. Between 3,000 and 4,000 employees retire every year. Also, employees on commissions, vacations and sick leave will not be covered by temporary workers.

Pemex will also restrict new hires, revise overtime payments and verify that the salary of workers corresponds to their level of responsibility and position.

The company expects its income to drop 13.3% in 2015. For this reason it cut is operating expenses by 3.2 billion pesos (US$210.4 million dollars) and its investment budget by 58.79 billon pesos (US$3.8 billion).