BP, a major oil company based in the U.K., has announced significant job cuts as part of its strategy to reduce costs. The company will cut 4,700 jobs globally and an additional 3,000 contractor positions. This decision constitutes roughly 5% of BP’s total workforce of 90,000 employees.
In a recent email to employees, BP’s CEO, Murray Auchincloss, explained that these layoffs represent a large portion of the company’s expected reductions for the year. He also noted that about 2,600 contractors affected by this announcement have already exited the company.
Last year, BP identified a goal to save $500 million in costs, part of a broader initiative targeting $2 billion in savings by 2026. Auchincloss indicated that the company is redirecting its focus towards higher-value projects, pausing or stopping 30 initiatives since June.
These job cuts come amid efforts to enhance BP’s digital capabilities, with an increasing reliance on technology like artificial intelligence in its operations. Despite a shift away from certain renewable energy projects, Auchincloss remains optimistic about BP’s ability to adapt and flourish during the ongoing energy transition.
The company’s share price has faced challenges, declining about 20% since the previous spring. Additionally, BP has moved away from its earlier ambitions to significantly reduce oil and gas production by 2030.
In light of recent events, Auchincloss has called for continuous improvements in competitiveness to keep pace with market demands and societal progress. The company has postponed a planned investor event in New York to allow the CEO time to recover from a medical issue, rescheduling it to February 26 in London.
