Petrofac is one of the big global energy companies in the world. Now, it is facing intense scrutiny in the UAE with Petrofac UAE layoffs after nearly 200 to 220 employees were laid off with only one day’s notice.
Affected workers say they are still waiting for clarity on their end-of-service (EOS) payments because the company’s financial challenges deepen after its UK court-supervised administration. Hence, it has raised fear of long delays or potential non-payments.
What Triggered the Petrofac UAE Layoffs?
The layoffs were directly connected to the cancellation of the role of Petrofac in a two-gigawatt Dutch offshore wind transmission programme. However, it is a project that created a major portion of its engineering and construction revenue.
After the termination, the holding entity of the company has entered administration in the UK. Hence, it triggered immediate early-release notices for UAE employees associated with the project. Industry sources confirm the following factors:
- Around 180–220 UAE staff were terminated.
- Many belonged to ETP UAE, Petrofac’s energy transition and renewables division.
- A small team remains temporarily to close out project activities.
Employees say the company had long been under financial pressure. In addition, internal discussions about cross-project cash challenges were happening “for weeks” before the layoffs.
One-Day Notice Leaves Staff Shocked
Many staff members described the termination process as sudden and emotional. Below is the list of the highlights of the town hall meetings:
- Employees were told their roles had ended effective immediately.
- They were instructed to return laptops, access cards and company property.
- Work emails were disabled the same day.
Salaries would only be paid for days worked up to November 18 or 19. Moreover, many staff, including long-serving engineers and single parents, say they were not given any clarity on notice periods, gratuity, or EOS benefits.
EOS Payments: The Centre of the Crisis
Employees say their biggest fear is the uncertainty surrounding end-of-service benefits. Moreover, they have the following concerns:
- No confirmation of when EOS payments will be made.
- Internal Q&A documents (not independently verified) reportedly state:
- Petrofac’s UAE EOS liability stands at $65 million.
- The company does not have the funds to pay the amount at once.
- Workers worry that if UAE entities also enter insolvency later, their dues may be delayed or jeopardised.
Some employees have already prepared or submitted complaints to the MOHRE. However, the exact numbers of workers are not confirmed yet. One senior project manager said, “They terminated people without notice and gave no assurance on EOS. Many fear they may never receive what they are legally owed.”
Another employee expressed concern that cash from the UAE operations might be moved to the UK during restructuring, which would complicate the EOS recovery.
Petrofac Responds: UAE Operations ‘Continue as Normal’
The company has released an official statement about the Petrofac UAE Layoffs. Below are the key highlights of the statement:
- Its UAE project portfolio continues operating normally.
- Early-release notices were issued only to employees tied to the terminated offshore wind programme.
- The company is working closely with MOHRE.
- It is focused on “preserving value and operational capability” as part of its restructuring strategy.
On the other hand, the company has not raised the following concerns:
- Exact number of UAE employees affected
- EOS payment timelines
- Possible rehiring in other Petrofac entities
Some staff members has said that they were informally told that rehiring might occur later. However, the company has not issue any confirmation regarding this issue/
Restructuring, Possible Asset Sales & Future Outlook
Industry sources say administrators are evaluating the following factors:
- Which business units remain profitable
- Which UAE entities could attract investor interest
- Which units may be sold, merged, or wound down
Entities with ADNOC-linked projects are reportedly among those considered more “valuable.” However, employees stress that these are internal discussions, but they are not confirmed company plans.
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