China National Petroleum Company (CNPC) said it will reduce its staff at its headquarters in Beijing by 20%.
The move is part of an efficiency drive by the country’s top state energy group.
The staff reduction plan comes amid the continued global decline in oil price.
The decision will also reduce the number of departments at the headquarters.
Some divisions will be merged such as the quality and standards supervision departments.
Earlier this year CNPC carried out a major restructuring including selling $11billion worth of financial assets to a listed unit.