MEXICO · ENERGY
Key Facts
- —What is happening Pemex has begun dismissing trusted staff and lowering the pay level of others, starting with 11 dismissals in Reynosa, Tamaulipas, with no total confirmed and no Pemex comment found.
- —Why it matters A 2025 plan would cancel 3,051 trusted posts, 14% of the total, at a state oil company that lost money in the first half of 2026.
- —The numbers One worker was moved from pay level 39 to level 30, and the 2025 plan sets total savings of 9.96 billion pesos (about US$535 million) across several staff measures.
- —Who is who UNTyPP is a union of more than 5,000 oil technicians that Pemex does not recognise, and Juan Carlos Carpio has led Pemex since May.
- —What to watch The union plans to protest at the Energy Ministry after getting no reply, and Pemex has not said how many staff are affected.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
- —What it means for you US holders of Pemex dollar bonds and Texas border communities should note that cost cuts are deepening, though no market reaction to these cases was found.
Pemex, Mexico’s state oil company, is dismissing trusted staff and cutting pay levels for others. No total has been confirmed.
Expansión reports that Pemex, Mexico’s state oil company, has begun dismissing trusted staff and cutting pay levels. The first cases are in Reynosa, Tamaulipas, across from McAllen, Texas, where a union says 11 workers were dismissed on 5 October.
Trusted staff, known in Spanish as personal de confianza, are managers and specialists outside the main oil workers’ union contract. No Pemex statement on the new cases had been found by the morning of Thursday, 22 October.
What the Dismissal Letters Show
Expansión, a Mexican business magazine, published the story on Wednesday, 21 October, using letters shared by affected workers. The union UNTyPP says 11 workers were dismissed in Reynosa, two of them its members.
The letters say severance will be paid under Pemex’s rules for trusted staff, within 60 days. The amount depends on the law, years of service and time worked.
The letters also set a condition, Expansión reports: signing means accepting the payment and agreeing not to sue Pemex. That covers labour, civil, commercial, criminal and administrative action.
Staff who keep their jobs face lower pay levels. One worker was moved from level 39 to level 30, which the union says means earning less than half.
Union official Silvia Ramos says the cuts began with selective dismissals and moved to level cuts last week. Expansión found no overall figure for dismissals or level cuts.
A Second Account From El Financiero
El Financiero columnist Atzayaelh Torres wrote on 21 October that Pemex under Juan Carlos Carpio is forcing some staff into lower posts. Documents seen by the column show drops of two to seven levels, with seniority promised.
The piece is an opinion column citing sources close to the company, not an official count. It also says the union contract was left untouched.
The Plan Behind the Cuts
In a June 2025 statement to the stock market, Pemex said it would reduce administrative structures after its reorganisation. It put liquidations at under 1.4% of permanent trusted posts and said the cuts would focus on support areas.
The company projected savings of 3.532 billion pesos (about US$190 million) for 2025 and 1.266 billion pesos (about US$68 million) for 2026. Hiring of new trusted staff has been limited since December 2024.
Pemex’s strategic plan, as reported by Expansión in August 2025, cancels 3,051 trusted posts, equal to 14% of the total. That item saves 3.507 billion pesos (about US$188 million).
The same plan includes lowering command levels, with projected savings of 1.509 billion pesos (about US$81 million). All measures, including platform pay, would save about 9.96 billion pesos (about US$535 million), or 29% of trusted staff spending.
Conversions in this article use the rate of 22 October 2026, 18.63 pesos to the US dollar, from open.er-api.com. Figures from the 2025 plan and 2026 results are converted at that same rate.
Why a Small Union Is Raising the Alarm
UNTyPP was founded on 18 March 2008 in Mexico City and holds registration with the federal labour ministry. It says it groups more than 5,000 oil technicians and professionals.
Pemex does not recognise it as a union and treats its members as trusted staff, which the union says limits their protections. The larger Mexican Petroleum Workers’ Union, known as STPRM, holds the main collective contract.
The UNTyPP asked the Energy Ministry for a meeting to stop the cuts and received no reply, Ramos says. It is now preparing a demonstration outside the ministry.
A separate group, Petroleros Reclamantes, told Novedades de Tabasco on 20 October that Pemex fired more than 3,000 workers this year. Its coordinator, Raúl Drouaillet Patiño, put about 700 of them in Tabasco; Pemex has not confirmed the figures.
Pemex Finances in Brief
Pemex posted a first half 2026 net loss of 27.97 billion pesos (about US$1.5 billion), against a profit a year earlier. The second quarter brought a profit of 18.02 billion pesos (about US$967 million), Forbes México says of the filing.
Carpio, a former finance chief, took over in May from Víctor Rodríguez Padilla, who led Pemex through the 2025 restructuring. Liquid hydrocarbon output of 1.658 million barrels a day in the second quarter remains below the 1.8 million target.
What It Means for US Readers
Pemex is a large issuer of dollar bonds, and US funds hold them, so its efforts to cut costs matter to creditors. The cuts also show the strain on a company that depends on government support.
Reynosa sits across the border from Texas, so job losses there may be felt on both sides. No move in Pemex bond prices tied to these cases was found.
Related coverage: Pemex says its debt fell US$20 billion and the fuel theft crackdown with 2,539 arrests. See also Mexico economy key players and Mexico coverage.
What Is Not Known
No total number of dismissals or level cuts has been confirmed, and Pemex has not commented on the new cases. Ramos said it was not known whether at least 800 reported STPRM dismissals belong to the same process.
It is not known how many workers have signed the waiver of legal action, or whether courts will test it. Nor is it clear whether level cuts follow the 2025 plan or a new decision.
What Comes Next
The union plans a demonstration outside the Energy Ministry, but no date was given. A protest does not mean Pemex will pause the cuts.
Pemex’s next quarterly report should show payroll costs, though no date was found in the sources checked. Until then, the scale of the cuts rests on union accounts, documents and Pemex’s 2025 targets.
Frequently Asked Questions
Is Pemex laying off workers in October 2026?
Mexican outlets report that Pemex has dismissed trusted staff, with 11 cases in Reynosa, Tamaulipas. Pemex has not confirmed a total or commented on these cases.
What are trusted staff at Pemex?
Trusted staff, or personal de confianza, are managers and specialists outside the main union contract. Pemex has a separate rulebook for their employment and severance.
How big are the Pemex pay level cuts?
One worker was moved from level 39 to level 30, which the union says halves pay. El Financiero reports drops of two to seven levels.
Why is Pemex cutting staff?
Pemex said in a June 2025 stock market notice that it was removing redundant functions after its reorganisation. A 2025 plan reported by Expansión targets savings of about 9.96 billion pesos (about US$535 million) across several measures.
Does this affect US investors?
Pemex issues dollar bonds held by US funds, and cost cuts matter to its finances. No market reaction to these cases was found.
Sources: Expansión, 21 October 2026; El Financiero, 21 October 2026; Pemex statement on its reorganisation, June 2025; Expansión, August 2025; Novedades de Tabasco, 20 October 2026; Forbes México, 31 July 2026; Zeta Tijuana, 15 May 2026; open.er-api.com exchange rates (all accessed 22 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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