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Brazil’s Petrobras to slash operational costs

March 9, 2019

SAO PAULO (AP) — Brazil’s state-run oil company has announced plans to slash $8.1 billion from its operational costs between 2019 and 2023 to “maximize value for shareholders.”

Petrobras said in a Friday night statement that the amount to be reduced is 6.6 percent of the $122.6 billion originally budgeted for the period.

The company said it plans to introduce cuts to staff spending and reduce discretionary expenses like sponsorships and advertising.

A voluntary layoff plan is expected to be launched soon, but the company did not say when.

Petrobras also said a divestment plan would be expanded to include oil and gas fields in “land and shallow waters.”

It said divestment will improve “capital allocation, increase value generation and make it possible to reduce indebtedness and the cost of capital.”