BP to cut 4,700 jobs to cut costs
Oil giant BP is to cut 4,700 jobs, more than 5% of its workforce, as part of its cost-cutting plan.
The British company, which has a global workforce of around 90,000 people, confirmed the job losses on Thursday but did not say how many roles would be affected in each country where it operates.
An email to employees also confirmed that about 3,000 contractors will also be laid off this year.
BP employs around 16,000 people in the UK, of which 6,000 are based in petrol and service stations and will not be affected by the cuts.
Chief executive Murray Auchincloss announced plans to streamline the business last year, targeting $2bn (£1.6bn) in cost cuts by the end of 2026, and plans to save $500m of that this year.
“We’ve got a lot of work to do this year, next year and beyond, but we’re making strong progress as we position BP as simpler, more focused, higher value growth,” he said in an email to employees on Thursday. company.”
The boss added: “He recognizes the uncertainty this brings to everyone whose work could be at risk, as well as the impact it can have on colleagues and teams.”
About 2,600 of the contractors affected by the construction have gone out of business, he said.
The announcement comes following a review of all BP units. The company has a multi-year plan to make savings in its operations, and has warned that more job cuts are possible.
The energy giant is trying to bring more digital capabilities to its business, with artificial intelligence playing a growing role in engineering and marketing.
Mr Auchincloss said BP was focusing its resources on “our high-value opportunities” and had either suspended or terminated 30 projects as of June 2024.
In the year In 2023, the company came under fire for raising its plan to reduce the amount of oil and gas it produces by 2030.
The company had previously promised to cut emissions by 35-40% by the end of this decade, but has since announced. Aim for a 20-30% reduction now and invest in fossil fuels.
But Mr Auchincloss, who took over the company a year ago, hopes the cost-cutting drive will boost the company’s flagship prices, which have fallen 20 per cent since last spring.
The appointment follows the sudden exit of the previous leader. Bernard Looney in his assessment of his personal relationships with colleagues.
Mr Auchincloss said the company was still “specially positioned to increase the value of the energy transition” into renewables.
“However, this does not give us an automatic right to win. We must move at the pace of our customers and society while improving our competitiveness,” he added.
