Brazil’s state-run oil company Petroleo Brasileiro (Petrobras) has reportedly announced plans to cut around 12,000 jobs as part of its voluntary dismissal programme at a cost of $1.2bn.

Petrobras has been hit hard by weak oil prices, refinery project issues, as well as a price-fixing, corruption scandal that has seen the imprisonment of former executives.

The latest move will allow Petrobras save up to $9.20bn by 2020 and help adjust the size of its workforce to a smaller investment plan.

"The goal of the programme is to adjust the workforce to the needs of the business plan."

Petrobras’s decision follows a plan that was announced in January to reduce the manager count at the company, in addition to a 2014 previous redundancy scheme.

Sources said a month back that the company is planning to cut its five-year investment plan by around 20% to $80bn during 2016 and 2020.

Bloomberg quoted Petrobras saying: "The goal of the programme is to adjust the workforce to the needs of the business plan, elevating productivity and generating value for the company."

The company’s board has approved the redundancy plan, which will be part of its management plan.

At present, Petrobras has 57,046 workers, with 6,254 workers having taken voluntary redundancy in 2014.

The company reported consolidated net losses of $10.4bn in 2015 when it also started a divestment plan worth $98.4bn in order to pay down its debt, Xinhua reported.