Image courtesy of Petrobras.

Brazil’s Petrobras is reportedly planning to cut another 15 percent of its staff, just two months after slashing its management headcount by 30 percent.

According to Brazilian media reports seen by Reuters, the state-owned company is planning to cut 15 percent of its staff through a voluntary lay off program that will be announced sometime in the middle of 2016.

The program is expected to result in up to 12,000 job cuts.

The company has not commented on the matter yet.

Petrobras announced a plan in January to slash its management headcount in non-operational areas by 30 percent, a move the company hopes will save it about $442 million per year.

That same month, Petrobras adjusted its 2015 to 2019 spending plan down to $98.4 billion, a $32 billion reduction from its previous $130.3 billion budget.

The company has been dealing with the fall out of a years long corruption and contract price-fixing probe that has landed several former executives in jail.

The probe, known as Operation Car Wash, has focused on bribes and kickbacks paid by several engineering and energy firms to win Petrobras contracts.

Former Brazilian president Luiz Inacio Lula da Silva was held for questioning earlier this month as police conducted raids on his home and offices.

Brazilian prosecutors allege that Lula da Silva received gifts tied to the kickbacks, including luxury real estate and speaking fees paid by companies involved in the corruption scandal.

Lula da Silva joined the administration of current president Dilma Rousseff on Wednesday as her new chief of staff, an appointment that may earn him immunity against prosecution.

Brazilian cabinet ministers and other senior officials can only be tried by Brazil’s highest court, the Supreme Federal Tribunal, the New York Times said.

Lula da Silva’s appointment comes amidst mass demonstrations across Brazil calling for Rouseff’s impeachment.

Rousseff has denied any wrongdoing or involvement in the Petrobras scandal.

Petrobras, the most indebted oil company in the world, is also facing a class action lawsuit in the United States tied to scandal.

U.S. District Judge Jed Rakoff of Manhattan granted class action status to two classes of plaintiffs in February who brought suits against Petrobras for losses related to the corruption probe.


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