Brazil's Oi laying off 2,000 workers in latest cost-cutting - source

martes 10 de mayo de 2016 14:27 GYT
 

SAO PAULO May 10 (Reuters) - Brazilian telecommunications firm Oi SA is laying off about 2,000 employees, a move that will cut its payroll as much as 20 percent, to stem mounting losses at the heavily indebted company, a source familiar with the matter said on Tuesday.

The source requested anonymity but Oi confirmed in a statement that it was cutting administrative jobs "with the aim of maintaining profitability and productivity to confront the current macroeconomic outlook."

The company did not say how many positions would be cut.

Oi, which reports first-quarter results on Thursday, lost a net 5.4 billion reais ($1.5 billion) in 2015 following a 4.4 billion reais loss in 2014. Nearly half of its gross debt of 54.9 billion reais in December matures by the end of 2017.

Last month, Oi started talks with bondholders represented by Moelis & Co to restructure $14.3 billion of bonds.

Oi's latest job cuts follow its layoff of around 1,100 employees about a year ago to streamline the company in the face of a deep economic downturn.

Oi shares rose 1 percent in Tuesday trading, shy of a 2 percent gain on the benchmark Bovespa stock index.

($1 = 3.4857 Brazilian reais) (Reporting by Alberto Alerigi Jr.; Editing by Tom Brown)