Petrobras in Brazil ax 12,000 jobs

Petroleo Brasileiro--Petrobras-PBR-logo

State oil company of Brazil, of Petrobras, said it would cut 12,000 jobs by 2020.

voluntary dismissal program will save $ 9 billion in the company, which is struggling with losses following a price-fixing and bribery scandal.

It is also affected by the global downturn in oil prices.

Petrobras, which reported losses for the past two fiscal years, is expected to spend $ 1.23bn on the implementation of the plan of job cuts.

Petrobras has long been one of the largest employers in Brazil, with more than 80,000 employees.

However, he has seen his business suffered a huge drop in oil prices in the world and one of the biggest corruption scandals in the country's history, which went to the heart of the country's government.

The announcement that 12,000 jobs are to be cut over the next five years, the investment is part of the transformation plan over the fate of the company.

Analysis: Daniel Gallas, business correspondent in South America

This is not a good year for oil companies, as there is excess supply in the market and world prices hit records.

But of Petrobras - embroiled in a massive corruption scandal - things are even worse.

The company recorded two consecutive years of heavy losses and stopped paying dividends. Shares fell 50% in value since the beginning of the study.

A Chief Executive Aldemir Bendine to the crisis is to cut.

Petrobras drastically reducing their numbers - employees, assets and investments - in order to become competitive again.

If Petrobras, to become great again, he must first transform ourselves into a smaller and more efficient company.

It reported its biggest quarterly loss to date in the last three months of last year - $ 10.2 billion - after the loss of its oil fields and refinery projects.

Corruption scandal involving price-fixing, bribery and political setbacks in the past two years dented confidence in the business. Some former leaders of Petrobras were imprisoned.

The scandal has also harmed the reputation of President Dilma Rousseff, who was on the board of the company at the time of the crimes.

Ms. Rousseff faces the possibility of impeachment on the misuse of false statements.