Overcome with financial woes, Petrobras is taking another stumble as the company announced a voluntary termination program in hopes to reduce its workforce by 12,000 to save more than US$9 billion (33 billion BRL) in the coming years.
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Image from Petrobras. |
The voluntary program, which includes incentives, is open to all employees, regardless of age and tenure. The goal is to adapt the workforce to the needs of the company’s business and management plan, to optimize productivity and reduce costs with a focus on achieving the goals of the plan, Petrobras said.
The Brazilian giant currently has a total of 57,046 employees, 12,000 of which are eligible for retirement. The company is estimating that the implementation of the program will cost some $1.2 billion (4.4 billion BRL), however, is expected to save $9.2 billion by 2020.
Earlier this week, Petrobras announced a new organizational and management governance model that will see a 43% reduction in its 5300 managerial positions, exceeding its original plan of a 30% reduction. The move is expected to save the company an additional $500 million.
On a downward slope to cut costs, Petrobras made a further 25% cut ($32 billion) to its 2015-2019 business plan of $98.4 billion. In June, the business plan was at $130.3 billion.
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