SAO PAULO, Nov 18 (Reuters) - Brazilian state-run electricity utility Eletrobras expects to save 1 billion reais ($441 million) a year as a result of its employee buyout program, Chief Financial Officer Armando Casado de Araujo said on Monday.
The program will cost the company about 1.5 billion reais in severance costs, Araujo said in a conference call with analysts to discuss third-quarter earnings.
Eletrobras agreed in December to a government plan to renew expiring hydroelectric dam concessions in exchange for electricity rate cuts of between 18 percent and 32 percent.
The company posted a net loss of 915 million reais for the third quarter as it overhauled operations following the tariff reductions, according to a securities filing on Thursday.
Earlier this year, the company said it planned to cut 5,000 jobs as it embarks on a three-year turnaround effort aimed at slashing costs by 30 percent.
Shares of Centrais Eletricas Brasileiras SA, as Eletrobras is formally known, fell 1.2 percent to 10.69 reais in late afternoon trading, paring early morning losses of as much as 3.3 percent.
Brazil's stock market was closed on Friday for a national holiday.