BP to slash 5% of global workforce
By Abigail Townsend
Date: Thursday 16 Jan 2025
(Sharecast News) - BP is to slash its global workforce and axe contractor roles, it confirmed on Thursday, as part of ongoing plans to cut costs and boost profits.
The blue chip, which on Tuesday warned that is fourth-quarter results would be hit by weaker oil and gas production, plans to cut around 4,700 jobs worldwide. It will also axe 3,000 contractor roles.
Chief executive Murray Auchincloss - who took over in September 2023, following the shock departure of Bernard Looney - wants to boost both profits and BP's waning share price.
He has already scaled back BP's energy transition strategy and last year announced plans to trim costs by $2bn by 2026.
BP currently employees around 90,000 people globally, of which approximately 14,000 are based in the UK.
The oil major did not detail where the job cuts would be, although it is understood the 6,000 people working at BP's UK petrol and service stations will not be affected.
In an email sent to staff, seen and reported by PA Media and Reuters, Auchincloss wrote: "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.
"I understand and recognise the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams.
"We have a range of support available, and please continue to show care for each other, be considerate and keep putting safety first - especially during times of change."
In a statement, BP said: "We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.
"Today we have told staff across BP that the proposed changes...are expected to impact around 4,700 BP roles - these account for much of the anticipated reduction this year. We are also reducing our contractor numbers by 3,000."
BP was due to hold a much-anticipated investor day in New York on 11 February. However, it has been pushed back to 26 February and moved to London to give Auchincloss time to recover from an unspecified medical procedure.
As at 1230 GMT, shares in the blue were up 1% at 426.95p.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN