Mexico: government to cut 25,000 jobs due to the oil crisis

Mexico: government to cut 25,000 jobs due to the oil crisis

Editorial Staff
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The reduction, explained government officials, will affect federal employees (approximately 15,000 jobs) as well as the state oil company, Petroleos Mexicanos (Pemex)

Mexico continues to tighten its belt. The spending cuts initiated last year by the government of President Enrique Pena Nieto will, in 2016, lead to the dismissal of 25,000 public sector employees. This reduction, explained government officials, will affect federal employees (approximately 15,000 jobs) and the state oil company, Petroleos Mexicanos (Pemex), which is preparing for an imminent bailout. The cause of this adjustment, once again, is the oil crisis. Having become the “biggest nightmare” of the Mexican economy, the fall in the barrel price of crude oil has heavily damaged the public purse. In 2015, oil recorded the worst decline since 1994, reaching $46 billion, 33% less than in 2014. This result has led to a decline in oil revenues from 30 to 20%.