Petrobras is planning another round of layoffs and will attempt to renegotiate many more of its contracts with suppliers in order to reduce costs further, the company’s CFO Ivan Monteiro says.
It is all part of Brazil’s state oil firm’s continuing efforts to adjust to the new economic realities it faces in the wake of the massive corruption scandal and amidst the ongoing plunge in global oil prices.
An exact target for the amount of cuts has not been announced, however. Monteiro says the firm is still evaluating the effects of a first round of contract renegotiations before it can finalize the second one.
Market analysts have criticized the lack of specific savings targets in operating costs in Petrobras’ business plan. They have also questioned how investments and operating costs can be slashed without reducing output.