Brazil's Eletrobras mulls voluntary layoff plan, paper says

miércoles 24 de agosto de 2016 08:14 GYT

SAO PAULO Aug 24 (Reuters) - Centrais Elétricas Brasileiras SA, Brazil's state-controlled power holding company, is studying a plan to offer inducements for employees to quit to cut costs, newspaper Folha de S. Paulo reported on Wednesday, citing Chief Executive Officer Wilson Ferreira Jr.

Ferreira told Folha that neither the incentives that will be presented to workers nor the size of job cuts have been determined.

He added the so-called voluntary dismissal plan would be subject to negotiations with unions.

Rio de Janeiro-based Eletrobras , as the company is known, is one of Brazil's major state firms whose finances suffered from years of erratic policy decisions that hampered their ability to increase revenue and forced them to take on too much debt.

Ferreira has said that selling assets and undertaking stringent cost cuts are essential to help Brazil's biggest utility return to profitability. Press representatives at Eletrobras could not be found to confirm Ferreira's comments early on Wednesday.

Struggling with a debt burden of 18 billion reais ($5.6 billion) and a handful of money-losing distribution operations, Eletrobras is reviewing capital spending plans as well as expenses that are incompatible with the company's ability to generate cash flow, Ferreira told analysts last week.

($1 = 3.2363 Brazilian reais) (Reporting by Guillermo Parra-Bernal Editing by W Simon)