Oil giant BP has announced plans to cut approximately 4,700 jobs, representing over 5% of its global workforce, as part of a broader cost-cutting initiative.
The British company, which employs around 90,000 people worldwide, confirmed the layoffs on Thursday but did not specify how many roles will be impacted in each of the countries where it operates.
An internal email to staff also revealed that approximately 3,000 contractor positions are set to be eliminated this year.
BP’s workforce in the UK totals about 16,000, including 6,000 employees at petrol and service stations, who will not be affected by these reductions.
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BP's chief executive, Murray Auchincloss, has set a cost-reduction target of $2 billion (£1.6 billion) by the end of 2026, with $500 million to be saved this year. This initiative aligns with his vision to simplify the business, announced last year.
In an email to staff on Thursday, Auchincloss stated, "We have more work to do this year, next year, and beyond, but we are making strong progress in positioning BP as a simpler, more focused, higher-value company."
The planned cuts will primarily affect office-based roles, not operational positions. Auchincloss acknowledged the uncertainty these changes bring, saying, "I recognize the impact this has on those whose jobs may be at risk and on their colleagues and teams." He also confirmed that approximately 2,600 contractors impacted by the cuts have already exited the company.
This announcement follows a comprehensive review of BP’s divisions as part of a multi-year savings plan, which could result in further job reductions. The company is increasingly integrating digital technologies, including artificial intelligence, into engineering and marketing to enhance efficiency.
Auchincloss emphasized BP's commitment to focusing resources on "our highest-value opportunities," revealing that 30 projects have been halted or paused since June 2024.
In 2023, BP faced criticism for reducing its ambition to cut oil and gas production by 2030. Originally pledging a 35-40% reduction in emissions by the end of the decade, the company revised its target to a 20-30% cut while maintaining significant fossil fuel investments.
Auchincloss, who became CEO following the sudden departure of Bernard Looney in 2023, aims to revitalize BP's struggling share price, which has declined by around 20% since last spring. Despite challenges, he maintains that BP remains "uniquely positioned to grow value through the energy transition" to renewables.
However, he cautioned, "That doesn’t give us an automatic right to win. We must continue improving our competitiveness and moving at the pace of our customers and society."
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