BP to cut 4,700 jobs to cut costs

Oil giant BP will cut around 4,700 employees, more than 5% of its total workforce, as part of its cost-cutting plans.

The British firm, which has a global workforce of about 90,000, confirmed the job losses on Thursday, but has not said how many jobs will be affected in each country in which it operates.

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

BP employs around 16,000 people in the UK, of whom around 6,000 work in petrol and service stations, and will not be affected by the cuts.

Chief executive Murray Auchincloss, who announced his intentions to simplify the business last year, is understood to have set a cost reduction target of $2 billion by the end of 2026, of which $500 million will be saved this year.

In an email to staff on Thursday, he said: “We have more to do this year, next year and beyond, but we are making great progress as we position BP to grow as a simpler, more focused and of greater value.

The boss added that he recognizes “the uncertainty this brings for all those whose jobs may be at risk, and also the effect it can 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 that further job cuts are possible in the future.

The energy giant is looking to bring more digital capabilities to the business, with artificial intelligence playing an increasing role in engineering and marketing operations.

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 its plans to reduce the amount of oil and gas it produces by 2030.

The company had previously promised that emissions would be 35% to 40% lower by the end of this decade, but announced it would do so. We are now aiming for a 20-30% cut and maintaining investment in fossil fuels.

But Auchincloss, who took over the company a year ago, hopes his cost-cutting initiative will boost the company’s ailing stock price, which has fallen about 20% since last spring.

His appointment came after the abrupt departure of his predecessor, Bernard Looney, in the middle of a review of his personal relationships with his colleagues.

Auchincloss stated that the company was still “uniquely positioned to increase value through the energy transition” towards renewables.

“But that does not automatically give us the right to win. We have to continue improving our competitiveness and move at the pace of our customers and society,” he added.