Banco do Brasil SA expects to book some 260 million reais in extra payout expenses tied to its workforce reduction program.
In an Aug. 20 statement, the company said that the plan, which was approved in July, resulted in the dismissal of 2,367 employees, or roughly 2.5% of its workforce based on the company's total headcount of 96,168 at the end of June.
Banco do Brasil said that the move will result in an estimated 490 million Brazilian reais worth of annual savings, beginning in 2020.
When it announced plans to launch the redundancy program, the state-owned bank said it aimed to optimize its staffing levels by adjusting vacancies and "employee excesses."
As of Aug. 19, US$1 was equivalent to 4.03 Brazilian reais.
