BP to cut 4,700 jobs and 3,000 contractor roles to help save £1.6bn
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Oil company to lose 5% of its staff in effort to cut costs amid shareholder worries over green energy strategy. BP is to cut thousands of jobs from its global workforce, amounting to 5% of its staff, in an effort to save billions in costs to appease its worried shareholders.
The oil company reportedly told staff on Tuesday that it would cut 4,700 jobs and scrap another 3,000 contractor positions, after its chief executive promised to reduce the company’s costs by at least $2bn (£1.6bn) by the end of 2026. Murray Auchincloss has come under pressure from shareholders to improve BP’s returns amid growing dissatisfaction over the strategy set by his predecessor, Bernard Looney, before he was ousted from the top job for failing to disclose personal relationships with colleagues.
In an internal memo to staff, first reported by Reuters, Auchincloss said he understood and recognised the “uncertainty this brings for everyone whose job may be at risk” and also “the effect it can have on colleagues and teams”. He said: “We began a multiyear programme to simplify and focus BP last year – strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.
“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.”. BP employs 87,800 people worldwide. In the UK, its head office is in London, with other offices in the south-east of England and in Aberdeen.
