Grupo BTG Pactual Fires Workers in Chile in Cost-Cutting Effortby
Brazilian bank said it will trim 58 positions in Chile unit
Reductions are part of plan to lower firm's costs by 25%
Grupo BTG Pactual SA, the Brazilian investment bank that sought rescue financing after the arrest of its founder last year, said it is cutting about 15 percent of its workforce in Chile as part of a cost-savings effort.
The 58 jobs are mostly administrative with some executive positions and won’t affect daily operations, BTG Pactual Chile said Tuesday in an e-mailed statement. The reductions are part of a restructuring that the Brazilian parent company began in January as it seeks to lower costs by about 25 percent, according to the statement.
BTG is also considering job cuts in London and other Latin American countries except Brazil, as well as paying its annual bonuses in two tranches this year instead of the usual one in February, people familiar with the matter told Bloomberg this month.
The bank needs to reduce its workforce to remain profitable as Brazil’s economy slows and after the arrest in November of then-Chief Executive Officer and Chairman Andre Esteves in connection with a nationwide corruption scandal. Esteves, 47, has denied wrongdoing through his attorney. BTG has said it isn’t a focus of the investigation.
BTG began operations in Chile in 2012 after acquiring local brokerage Celfin Capital SA for $486 million. The bank has about 400 employees in Chile.