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Saturday, July 13, 2013

Brazil's Eletrobras cuts over 4,000 jobs in buyout

Brazilian state-led electric utility Eletrobras said on Friday 4,088 employees had agreed to a buyout package aimed at cutting payrolls and slashing costs in the face of lower electricity tariffs.


The company, formally called Centrais Eletricas Brasileiras SA, agreed in December to a government plan to renew expiring hydroelectric dam concessions in exchange for electricity rate cuts of between 18 per cent and 32 per cent.

The move led to a fourth-quarter loss of 10.5 billion reais ($4.6 billion) last year and a loss of 36 million reais in the first quarter of 2013.

In April the company said it planned to spend 1.4 billion reais to cut 5,000 jobs as it embarks on a three-year turnaround effort aimed at slashing costs by 30 per cent.

indiatimes.com

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