Brazil’s troubled state-run oil company Petrobras announced a beefed up voluntary layoff program that could affect up to 12,000 jobs amid intense efforts to cut costs. The movement came days after the company informed it would cut nearly half of its 5,300 managerial positions, which it expects will reduce operating costs by up to $500m a year, The Wall Street Journal reported.
The voluntary layoff program, which is being offered to all employees regardless of age or level of seniority, is likely to cost $1.2b. This is wider in scope than a similar layoff program offered in 2015, and the cost and savings could fluctuate depending on how many employees take the offer, the company said.
Meanwhile, Petrobras posted a record net loss of $9.7b in 2015, a year in which it began implementing a $98.4b divestment plan aimed at reducing its record debt burden, generating more cash flow and tackling a crisis triggered by the oil-price plunge, Fox News wrote.
Additionally, the company has also been hit by a massive graft scandal that allegedly ran from 2004 to 2014. Prosecutors said executives at the oil giant accepted bribes from large construction companies in exchange for approving inflated contracts and funneled some of the money to politicians.