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Brazil’s Eletrobras is implementing the first layoff plan since privatization

Brazil’s Eletrobras, Latin America’s largest power company, has announced a voluntary layoff plan, the first since privatization in June, that will cost 1,000 million reais (about $190 million) and will lay off 2,312 employees. The electric giant, whose control was diluted among private investors last June, said the plan would be offered to employees who continue working in the company despite the fact that they are already retired or those who will be able to retire by April 2023.

Those interested who, in addition to legal penalties for termination, will receive nine salaries and will retain eligibility for the health plan and food insurance for another three years, will have a deadline to join the plan between November 1 and 18, and terminations will be between December 2022 and April 2023. The company reported that, with the cost reduction achieved, it expects to recover the value invested in the outages in eleven months.

In recent years, Eletrobras has implemented several voluntary departure plans, when it was still under state control, which enabled him to reduce his workforce from around 26,000 workers to the current 12,000. The privatization of Eletrobras, which dragged on for several years, was finally implemented in June after approval by Congress, where it faced strong opposition resistance, and all supervisory bodies. With the sale of a large part of the state’s shares in the power giant, which brought 33.7 billion reais (about 6.358 million dollars) to the state coffers, the public’s share in the company fell from 70% to about 29%.

The privatization of Eletrobras was the first large state-owned company in Croatia The administration of President Jair Bolsonaro and although control has passed into private hands, the process guarantees the state a “golden share”, which retains veto rights over the company’s strategic decisions. Eletrobras is responsible a third of a generation in Brazil, It owns almost half of the country’s transmission lines, with a combined extension of more than 70,000 kilometers of transmission lines and an installed generation capacity of about 50,000 megawatts (MW).

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