Petrobras seeks to trim budget by cutting jobs, marketing

BRASILIA (Bloomberg) -- Petroleo Brasileiro SA plans to implement a voluntary redundancy program and cost-cutting measures aimed at shaving $8.1 billion off its budget for the next five years.

In a filing published on Friday evening, the state-run oil giant proposed slicing 6.6% off its $122.6-billion business plan for 2019-2023. Petrobras, as the company is known, aims to cut costs through a reduction in headcount, marketing and sponsorships.

While the measures entail an expansion of Petrobras’ disinvestment program, including the sell-off of more mature shallow-water oil and gas fields, midstream and downstream assets, the package doesn’t touch on the company’s refining capacity. Potential sales of Petrobras’ refineries are still being studied, the filing said.

In the company’s business plan, released in December, Petrobras projected surging oil production along with an ambitious program to sell assets and slash its debts.