Brazil’s Petrobras to slash management jobs

Brazilian oil and gas giant said it has approved a new restructuring plan aimed at saving by up to US$450 million (R$1.8 billion) a year.

“This reform is taking place as part of the company’s response to the oil and gas sector’s new circumstances, leading Petrobras to prioritize its most profitable activities and become more competitive,” Petrobras said in a statement on Thursday.

Petrobras plans to cut the number of managerial posts in non-operational departments by at least 30%. The company has around 7,500 approved managerial posts, of which 5,300 are in non-operational departments.

According to the statement, the first restructuring phase will involve eliminating 14 senior management functions. The number of departments will fall from seven to six through the merger of the Downstream and Gas & Electricity departments.

The total number of management posts reporting directly to the Board of Directors, CEO and directors will be reduced from 54 to 41.

The second phase, planned for February, will cover the remaining management functions. Appointments and team allocations will begin in March.

In order to increase the profitability of businesses, the new model will involve merging departments to harness synergies, the Brazilian company said.

Accordingly, the Downstream and Gas & Electricity departments will be also merged to form the Refining and Natural Gas Department.

LNG World News Staff