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2016-09-05 18:35:00

PETROBRAS CUTS 11,704 JOBS

PETROBRAS CUTS 11,704 JOBS

According to WSJ, Brazil's troubled state-run oil company Petróleo Brasileiro SA on Friday announced the end of its voluntary layoff program, with 11,704 workers deciding to leave the company amid intense efforts to cut costs.

Petrobras said the program, implemented in April, is likely to cost around 4 billion reais ($1.23 billion) and could save up to 33 billion reais through 2020. Petrobras already provisioned 1.2 billion reais in the second quarter.

In April, the company said it expected up to 12,000 employees to leave as part of the layoff program.

Petrobras has been making cuts across the board, reducing its once-ambitious investment plan and listing assets for sale as it tries to cope with low oil prices and a corruption scandal.

Petrobras had 78,470 employees at the end of 2015, down from a high of 86,111 at the end of 2013. Tens of thousands of third-party contractors dependent on Petrobras have also been fired or not had their contracts renewed amid the company's struggles.

Petrobras' net profit fell 30% in its second quarter from a year earlier to 370 million reais, the most recent figure available, due to weak fuel demand in recession-stricken Brazil and lower oil prices in the international market, among other factors.

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Earlier:

PETROBRAS NET INCOME $106 MLN 

STATOIL BUY BRAZIL: $2.5 BLN 

PETROBRAS SELLS $6.75 BLN 

PETROBRAS SELLS $1.4 BLN 

BRAZIL & VENEZUELA IN SHOCK

 

Tags: OIL, PRICE, PETROBRAS, BRAZIL, JOB

Chronicle:

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