U.K.-based oil giant BP announced plans to eliminate 4,700 jobs globally as part of a significant cost-saving initiative. In addition to the job cuts, BP is also reducing 3,000 contractor positions, and 2,600 of these roles had already left the organisation.
The reductions represent just over 5% of BP’s 90,000 total workforce.
In an email to employees on Thursday, BP chief executive Murray Auchincloss mentioned that the job losses “account for much of the anticipated reduction this year.”
In April 2024, Auchincloss established a goal to cut costs by $2 billion by the end of 2026, based on the expenditure levels of 2023. The plan aims, in part, to boost the company’s declining share price, which has dropped approximately 20% since last spring.
Last October, BP announced that it had identified $500 million of cost savings to be realised this year.
BP has also scaled back its involvement in several renewable energy projects and, according to media reports, has scrapped its earlier plan to reduce oil and gas production by 40% by 2030.
“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,” Auchincloss said in an email to BP staff.
“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.”
Shares of BP rose by over 1% by early afternoon in London following the company’s announcement on job cuts and cost-saving measures.