SHARE
Petrobras CEO Aldemir Bendine/Facebook.

Petrobras said Thursday it will slash its management headcount by at least 30 percent  in an effort to cut costs.

The state-owned company told Reuters  that it will cut at least 30 percent of its management staff in non-operational areas.

The cuts are expected to reduce costs by about $442 million per year.

According to Bloomberg, the company has about 7,500 management positions, with 5,300 of those being in non-operational areas.

A timeline for the layoffs has not been disclosed yet.

Petrobras also told Bloomberg that it will combine its refining and natural gas divisions, shrinking its total number of business units down to six.

The cuts and changes will be presented to shareholders for their approval, Bloomberg added.

Earlier this month, Petrobras adjusted its 2016 investment budget to $20 billion, down from the initial $27 million budget included in the company’s 2015-2019 Business and Management Plan.

The company is currently revising its estimate for its 2016 manageable operating costs.

Petrobras also reduced its overall capital expenditure budget for the 2015 to 2019 period by $32 billion to $98.4 billion.

The budget adjustments to the company’s investment portfolio will cut projected Brazilian oil production from 2.185 million barrels per day to 2.145 million bpd in 2016 and from 2.8 million bpd to 2.7 million bpd in 2020.