NEW YORK (TheStreet) -- Petrobras (PBR.A) stock is rising 3.44% to $2.26 in afternoon trading on Thursday after the company announced plans to cut annual costs by changing the company's management structure.

Only "nonoperational" units of the Brazilian state-run energy company will be affected by the new structure, which will lead to about $441.5 million in annual costs savings, the Wall Street Journal reports.

About 30%, or 1,590 positions, of management jobs will be eliminated as departments are merged and new hiring criteria are established for executive positions, the Journal notes.

Petrobras attributed the decision "to the need to align the organization with the new reality of the oil and gas sector and to prioritize profitability and capital discipline," the company said in a statement.

As oil prices continue to weaken, Petrobras has taken measures to reduce spending and its debt, which is the largest in the oil industry, through lower production and more divestitures, the Journal adds.

Separately, Petrobras has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's disappointing return on equity, weak operating cash flow, disappointing stock performance and high debt management risk.

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