BP, the British oil giant, is set to reduce its workforce by more than 5% as part of a cost-cutting initiative. The company announced plans to cut around 4,700 jobs this year, in addition to eliminating 3,000 contractor roles, with 2,600 contractors already having departed.
A spokesperson for BP stated that the company had initiated a multi-year program aimed at simplifying and focusing its operations to enhance competitiveness and resilience while reducing costs and driving performance improvements. The spokesperson highlighted that BP's workforce had significantly expanded in recent years due to acquisitions of businesses with large workforces.
BP's CEO, Murray Auchincloss, had previously set a target to reduce costs by $2 billion by the end of 2026 from the 2023 level. In a memo to employees, Auchincloss mentioned that the company had halted or delayed 30 projects since June and intensified efforts to digitize its operations.
Following the announcement, BP's stock saw a positive response, with shares rising over 1% in London. The company's stock had experienced a nearly 16% decline in 2024 as investors expressed concerns regarding BP's energy transition strategy.
