U.K.-based oil giant BP has announced a reduction in its workforce, with plans to cut 4,700 jobs worldwide and an additional 3,000 contractor roles.
This move is part of a broader cost-saving initiative aimed at improving the company’s financial health and competitiveness.
Layoffs at BP: Financial Context
The job cuts represent just over 5% of BP’s 90,000 employees globally.
CEO Murray Auchincloss revealed in an email to staff that these reductions account for much of the anticipated reduction.
He emphasized that this significant cut is planned for the year.
The company had previously identified $500 million in cost savings to be delivered this year. This amount is a quarter of the $2 billion target set for 2026.
Murray emphasized that BP is focusing resources on its highest-value opportunities.
The company has paused or stopped 30 projects since June 2024 as part of this strategy.
The job cuts are also aimed at integrating more digital capabilities into the business.
Artificial intelligence is playing an increasing role in engineering and marketing operations.
BP has scaled back on several renewable energy projects. The company has also abandoned a previous plan to cut oil and gas output by 40% by 2030.
Murray stated that while the company is still uniquely positioned to grow value through the energy transition, it needs to keep improving its competitiveness.
Additionally, the company must move at the pace of its customers and society.
CEO’s Message to Staff
In his email to staff, Murray acknowledged the uncertainty and impact the job cuts would have on employees and their teams.
He urged staff to show care for each other, be considerate, and prioritize safety during times of change.
The CEO also mentioned that about 2,600 contractors involved in the job cuts have already left the business.
The announcement comes days after BP delayed an investor event due to be held in New York to allow the CEO to recover after a medical procedure.
The event has been rescheduled to take place in London on February 26, 2025.
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