In a strategic move aimed at streamlining operations and enhancing efficiency, BP has announced a substantial reduction in its staff, indicative of a broader trend within the energy sector.
BP Initiates Job Cuts as Part of Cost-Cutting Measures
BP Initiates Job Cuts as Part of Cost-Cutting Measures
BP reveals plans to reduce its workforce by approximately 4,700 positions to achieve significant savings.
Oil giant BP has confirmed it will cut approximately 4,700 jobs, representing over 5% of its total workforce, as part of a campaign to manage costs. The company, which employs around 90,000 people globally, disclosed these job losses on Thursday without specifying which countries would be most affected.
Alongside the employee cuts, BP will also eliminate around 3,000 contractor positions this year. In the UK, where BP employs about 14,000 staff, those working in petrol and service stations—approximately 6,000 individuals—are expected to remain unaffected.
Murray Auchincloss, BP’s Chief Executive, indicated that the company is targeting a cost reduction of $2 billion (£1.6 billion) by the end of 2026, with expectations of saving around $500 million in the current year. In a message sent to employees, Auchincloss acknowledged the challenges posed by these cuts and their potential impact on staff morale and team dynamics.
He stated, "We have got more we need to do through this year, next year and beyond, but we are making strong progress as we position BP to grow as a simpler, more focused, higher-value company." The ongoing job cuts coincide with BP's efforts to integrate more digital solutions throughout its operations, including the increased utilization of artificial intelligence in various areas such as engineering and marketing.
Auchincloss also noted that about 2,600 of the contractors affected had already departed from the organization prior to this announcement.
