BP to eliminate 4,700 positions globally in a bid to reduce costs

LONDON — BP, the U.K.-based oil giant, has announced a significant reduction in its workforce as part of an ongoing effort to cut costs. The company will eliminate 4,700 jobs globally along with an additional 3,000 contractor positions. This decision has been communicated to employees in an internal email from CEO Murray Auchincloss, who noted that these job reductions will largely contribute to the anticipated cuts for the year.

This latest round of layoffs represents more than 5% of BP’s total workforce of 90,000 employees worldwide. According to Auchincloss’s memo, approximately 2,600 contractors affected by this decision have already departed from the organization. In a previous announcement last October, BP identified $500 million in cost savings it aims to achieve this year, as part of a broader goal to reach $2 billion in savings by 2026.

Auchincloss emphasized that the company is prioritizing its resources toward the most valuable opportunities and mentioned that since June, BP has halted or paused 30 projects. This strategic pivot aligns with the company’s goal of enhancing its digital capabilities, with a focus on integrating artificial intelligence into various engineering and marketing functions.

In a bid to boost its struggling share price, which has seen a decline of about 20% since the previous spring, BP is scaling back on several renewable energy initiatives and has reportedly abandoned previous plans to reduce oil and gas production by 40% by 2030. Nevertheless, Auchincloss expressed confidence in BP’s unique position to generate value during the energy transition. He also stressed the necessity for the company to continue improving its competitiveness and adapt to the evolving needs of customers and society.

This announcement comes shortly after BP postponed an investor event in New York to allow the CEO time to recover from a recent medical procedure. The capital markets event originally scheduled for February 11 has been rescheduled to take place on February 26 in London, ensuring that Auchincloss has adequate time for full recovery.