NEW YORK (TheStreet) -- Petrobras (PBR) - Get Report stock is increasing 0.80% to $3.15 in afternoon trading on Thursday as the company plans to reshuffle its management structure to reduce annual costs.
The new structure will only affect "nonoperational" portions of the company and lead to about $441.5 million in annual cost savings, the Wall Street Journal reports.
About 1,590 management positions will be cut as the company merges departments and establishes new hiring criteria for executives, the Journal adds.
Petrobras' decision was "due 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 cheaper oil persists, the Brazilian state-run energy company has taken measures, such as lowering production and selling assets, to reduce cost and lower its debt, which is the largest in the oil industry, the Journal notes.
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.
You can view the full analysis from the report here: PBR
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