Petrobras Implements New Cost Saving Structure, Cites 'New Reality' Of Low Oil Prices

According to The Wall Street Journal, Petroleo Brasileiro SA Petrobras (ADR) PBR has announced a series of changes to its senior management structure to save 1.8 billion reals ($441.5 million) a year.

The Wall Street Journal noted Petrobras plans on eliminating 1,590 management jobs within "nonoperational" segments of the business and is meant to give a greater priority to profit and financial discipline.

"It's a revolutionary thing for the company and something that the company has needed for a long time," Petrobras' CEO Aldemir Bendine was quoted as saying.

Bendine cited the "new reality" and "extreme volatility" of low prices, in addition to a wide-ranging corruption investigation that has been ongoing for more than a year in enforcing the new changes.

The Wall Street Journal also noted that the release of Petrobras' new five-year business plan could be unveiled in March.