KUALA LUMPUR: FGV Holdings Bhd has denied a news report today stating that the plantation company is seeking to reduce 6,000 workers over a three-year period as a move to trim costs, while optimising assets under its extensive turnaround plan.
Its CEO, Haris Fadzilah Hassan, explained that the group had never intended to terminate 6,000 of its workers, but only planned to reduce 10% of the manpower cost per year.
In a statement to TV3’s Buletin Utama today, he said the plan included the cost reduction of overtime allowances, medical bills and others for the employees.
He added that any reduction in workers would only happen if there are any non-core business disposal activities being done by the group, as well as through the mutual separation scheme (MSS) and retirement activities.
Haris said the yearly 10% operation cost reduction exercise would be implemented over the next three years as FGV’s current operation cost was a bit high, now exceeding RM1 billion per annum.
A news report today said that FGV is seeking to cut as many as 6,000 staff as part of its recovery plan after it recorded a massive RM1.07 billion loss for its financial year ended Dec 31, 2018 – its worst since going public in 2012 – as a result of huge impairments and low crude palm oil prices.