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2014-05-07 17:59:00

PETROBRAS CUTS 12.4%

PETROBRAS CUTS 12.4%

Brazilian state-run energy giant Petroleo Brasileiro SA, or Petrobras, said Monday that it has reduced its workforce by 12.4% through a voluntary separation program launched in January to save costs.

Petrobras bought out 8,298 employees, 55% of whom are expected to part ways with the company this year. It expects to save at least 13 billion Brazilian reias ($5.85 billion) in the 2014-18 period thanks to the program, which came close to its target of 8,500 workers.

In the short term, the buyouts will come at a price tag of BRL2.4 billion, which Petrobras will provision in its first-quarter results, scheduled to come out this week.

Petrobras is struggling to rein in its debt levels amid a massive investment program to develop Brazil's offshore oil reserves. Meanwhile, a government mandate to sell gasoline and diesel fuel at subsidized prices has been eating away at its cash.

wsj.com

Tags: PETROBRAS, OIL

Chronicle:

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