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06 December 2023

Sabic freezes staff bonuses

By Reuters

Saudi Basic Industries Corporation (Sabic) will freeze promotions and bonuses for more than half its employees this year to maximise its cash flow as the global crisis bites, its Chief Executive Mohamed Al Mady said yesterday.

Staff working for Sabic Innovative Plastics (Saip) and at Sabic Europe will not be affected because they have already been subject to a similar move, he said.

Sabic Innovative Plastics is the name Sabic gave to General Electric's plastics unit which it bought last year for $11.6 billion (Dh42.5bn).

"Sabic looks at all costs and aims to keep a maximum amount of cash flow. But the internal conditions are excellent, our rating is good," Mady said.

He declined to say how much money would be saved through this decision citing the sensitivity of the information.

Sabic reported last month a near-96 per cent fall in fourth-quarter profit due mainly to sagging global demand.

"The decision involves Sabic employees in the Kingdom and in our international branches to the exception of Saip and Sabic Europe," Mady added noting that the move would involve 17,000 employees.

State-controlled Sabic employs about 30,000 people.