BP will cut 4,700 jobs – around 5% of the global workforce – in an effort to reduce costs and boost investor trust.
In an effort to cut its expenditure by PS1.6bn, the London-based energy company is also cutting 3,000 contractor jobs this year.
In a memo sent to employees, CEO Murray Auchincloss announced the news: “We still have a lot to do this year, and next year. But we are making good progress in our efforts to position BP for growth as a more focused, simpler company with higher value.”
This announcement comes only days after the company announced that the results for its fourth quarter of 2024 were affected by lower gas and oil production.
BP confirmed the proposed changes to headcount and explained that the reductions are a result of its decision to launch a multi-year program last year in order to simplify the business.
A spokesperson for the company said: “We are strengthening competitiveness and building resilience as we reduce our costs, drive improvement in performance and play to our unique capabilities.” A series of programmes have been implemented in BP’s businesses to achieve this.
According to BP which employs approximately 90,000 employees worldwide, the redundancies are the result of a review across all divisions. The exact number of job losses has yet to be disclosed.
A spokesperson said: “As we continue our transformation, our priority is – of course- to ensure safe and reliable operations while continuing to support our team.”
Auchincloss will present his new business strategy at a day for investors on 26th February. The investor day will be held on 26 February, following the release of BP’s full-year results.
Shell, a competitor, has reduced its headcount in recent years as part of cost-cutting efforts, including reducing its oil and gas division by 20%, and its low-carbon unit.
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