In an effort to cut down expenses, BP, one of the world’s leading energy companies, has announced significant job reductions amounting to 4,700 positions, representing over 5% of its global workforce of around 90,000 employees. The company confirmed the layoffs in an email to staff on Thursday. While the specifics of the cuts across different countries have yet to be disclosed, it was noted that around 3,000 contractor roles will also be eliminated this year. In the UK, BP employs around 14,000 individuals, with 6,000 working in petrol and service stations, who are expected to be spared from these layoffs.
BP Announces Major Job Cuts as Part of Cost-Cutting Strategy
BP Announces Major Job Cuts as Part of Cost-Cutting Strategy
Oil giant BP plans to eliminate approximately 4,700 jobs to streamline operations and reduce costs.
Murray Auchincloss, BP's Chief Executive, had previously signaled a desire to simplify the business structure, setting a robust cost reduction target of $2 billion (£1.6 billion) by the end of 2026. For the current year, they aim to trim costs by $500 million. Auchincloss articulated the difficult implications these decisions carry for employees, stating, "I recognize the uncertainty this brings for everyone whose job may be at risk." The restructuring moves are expected to complement BP's growing focus on integrating digital capabilities and artificial intelligence within its operations, particularly in engineering and marketing. Notably, Auchincloss mentioned that roughly 2,600 contractors identified for layoffs have already departed from the company.
