Central Office New Organizational Chart Approved by KMG Board of Directors
The Board of Directors of KazMunayGas (KMG) approved the new organizational chart during the meeting held on 29 April 2020. The resolution was approved as part of the action plan to balance the company's financial standing and mitigate the adverse effect of market factors.
The new KMG Central Office organizational chart provides:
- integration of Geology, Exploration and Production offices. The position of Chief Geology and Exploration Officer is, therefore, cancelled;
- minimization of management levels, which implies elimination of 22 managing directors;
- three-time reduction of the departments.
"We should have a lean Corporate Center structure capable to respond quickly and make effective decisions to overcome the crisis consequences with minimum losses for the business. We will give up many functions and review the algorithm of interaction with the subsidiaries to focus on the anti-crisis strategy activities", KMG CEO Alik Aidarbayev said.
KMG specialists now enhance its business processes and review a large number of project and activity plans as many of them are out of date because of the crisis. In this light, a decision was made to reduce the headcount of the central office by 34% from 729 to 480 people.
KMG management, understanding its social responsibility before the employees and their families, intends to provide maximum assistance to the terminated employees. This assistance includes the following options at the choice of the terminated employees: payment of a one-time allowance, services of the recruitment agencies or retraining to paid by KMG. These assistance measures of socially responsible employment termination have been prepared as part of Samruk-Kazyna instruction.