BP is set to reduce its global workforce by thousands, cutting 5% of its staff to save billions and reassure concerned shareholders. The company informed employees on Tuesday of plans to eliminate 4,700 jobs and terminate 3,000 contractor roles, aiming to slash costs by at least $2 billion (£1.6 billion) by the end of 2026.
Murray Auchincloss, under pressure from shareholders dissatisfied with the strategy of former CEO Bernard Looney—who left the company due to undisclosed personal relationships—acknowledged the uncertainty these cuts create. In a memo reported by Reuters, Auchincloss expressed understanding of the impact on employees and emphasized BP’s ongoing efforts to streamline operations and improve competitiveness.
Auchincloss noted that the company is making progress in becoming a simpler, more focused entity, although further actions are needed through the coming years.
BP, which employs 87,800 people globally, has its UK headquarters in London, with additional offices in southern England and Aberdeen. Auchincloss, previously BP’s finance chief, was set to address shareholders in New York next month but postponed the event to February, relocating it to London due to a planned medical procedure.
Meanwhile, BP reported a troubling trading update for the last quarter of the previous year, anticipating lower oil production, weaker refining margins, and poor oil trading performance.
Since Looney’s strategy to cut oil and gas production in favor of green energy investments, BP’s shares have dropped 7% over the past year. Rival companies Shell, Chevron, and ExxonMobil, which continue to focus on increasing oil and gas output, have seen their market values rise by 8% or more. BP’s market capitalization has fallen from £110 billion in late 2019 to less than £68 billion today.
