Brazilian giant Petrobras is expecting to reduce its annual costs by an additional US$500 million with a reorganizational plan that will cut jobs by 43%, compared to its original goal of 30%.
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Image of Petrobras headquarters in Brazil, from OE staff. |
According to a securities filing, Petrobras said that its new organizational management and governance model will see a 43% reduction in the 5300 managerial positions in non-operating areas, exceeding the initial 30% goal. Additional measures, including a “redistribution of activities and the combination of areas,” will ultimately save the company $500 million.
Cuts have been in the forefront of Petrobras’ plans. Most recently, in January, the company made a further 25% reduction or $32 billion to its previously announced 2015-2019 business plan of $98.4 billion. In June, its business plan stood at $130.3 billion.
In an effort to streamline its business, Petrobras also announced its new governance model, which will create six technical statutory committees composed of executive officers, who will be co-responsible for decisions and the preliminary analysis to make recommendations on the topics to be discussed by the executive officers, the company said.
Petrobras’s new executive officers include: Solange da Silva Guedes, exploration and production; Roberto Moro, production and technology development; Jorge Celestino Ramos, refining and natural gas; João Adalberto Elek Júnior, governance, risk and compliance; Ivan de Souza Monteiro: financial and investor relations; Hugo Repsold Júnior: human resources, HSE and services.
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Petrobras cuts capex by $30 billion
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