BP to cut 4,700 jobs to cut costs

Oil giant BP will cut around 4,700 jobs, or more than 5% of its total workforce, as part of its cost reduction plans.

The British company, which employs around 90,000 people worldwide, confirmed the job cuts on Thursday, but did not specify how many positions will be affected in each country where it operates.

An email to staff also confirmed that around 3,000 contractor positions would also be cut this year.

BP employs around 16,000 people in the UK, including around 6,000 in petrol and gas stations, and will not be affected by the workforce reductions.

Chief executive Murray Auchincloss, who last year announced plans to simplify the business, has reportedly set a $2bn (£1.6bn) cost reduction target by the end of 2026 , of which $500 million is expected to be saved this year.

In an email to staff on Thursday, he said: “We still have much to do this year, next year and beyond, but we are making great progress in positioning BP to grow as a than a simpler, more targeted and higher value-added business. business.”

It is understood that the reductions will be applied to those in office jobs rather than operational roles.

The boss added that he recognized “the uncertainty this brings for everyone whose jobs may be at risk, as well as the effect this may have on colleagues and teams”.

He said about 2,600 of the contractors affected by the cuts had already left the business.

The announcement follows a review of all BP divisions. The company has a multi-year plan to make savings across its operations and has warned there could be more job cuts to come.

The energy giant is trying to introduce more digital capabilities into its business, with artificial intelligence playing a growing role in engineering and marketing operations.

Mr Auchincloss said BP was focusing its resources on “our highest value opportunities”, adding that it had stopped or paused 30 projects since June 2024.

In 2023, the company was criticized for scaling back plans to reduce the amount of oil and gas it produces by 2030.

The company had previously promised its emissions would be reduced by 35 to 40 percent by the end of this decade, but announced it would do so. Now aiming for a reduction of 20 to 30% and maintaining investments in fossil fuels.

But Mr. Auchincloss, who took over as CEO a year ago, hopes his cost-cutting measures will help boost the company’s share price, which has fallen by about 20 % since last spring.

His appointment follows the sudden departure of his predecessor, Bernard Looney, in the midst of an examination of his personal relationships with colleagues.

Mr Auchincloss said the company was still “uniquely positioned to drive value through the energy transition” to renewables.

“But this does not automatically give us the right to win. We must continue to improve our competitiveness and evolve at the pace of our customers and society,” he added.