Executives of Brazil’s state-run oil producer Petroleo Brasileiro SA approved a voluntary layoff program to cut about 12,000 jobs and save 33 billion reais ($9.20 billion) by 2020, the company said in a statement on Friday.
The program will cost 4.4 billion reais ($1.23 billion) to be implemented, Petrobras said.
The layoffs will help Petrobras adjust its workforce to a smaller investment plan, generate value for the company and boost productivity, the company said.
Petrobras plans to slash its five-year investment plan by about one-fifth to about $80 billion in the 2016-20 period, an average of about $16 billion a year, according to sources a month ago.
Petrobras had its biggest-ever quarterly loss in the fourth quarter of 36.9 billion reais ($10.2 billion) after booking a large writedown for oil fields and other assets as oil prices slumped and refinery projects faltered.
A year earlier, writedowns were also the cause of Petrobras losses, although they were largely related to the giant price-fixing, bribery and political kickback scandal that has roiled the company and help fuel calls for the impeachment of Brazilian President Dilma Rousseff.
(Reporting by Silvio Cascione; Editing by Chizu Nomiyama and Phil Berlowitz)