BP HAS said it will cut 4700 jobs across its global workforce and 3000 contractor roles as part of a cost-saving drive, prompting concerns for Scottish jobs.
The company did not disclose how many people were affected per country, but the reductions amount to just over 5% of its 90,000 worldwide employees.
BP has about 14,000 UK workers, with approximately 2000 based in Scotland as of 2023. Around 6000 of the UK workforce are based in petrol and service stations and will not be affected by the cuts.
Chief executive Murray Auchincloss announced the redundancies in an email to staff on Thursday.
He wrote: “I understand and recognise the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams.”
“We have a range of support available, and please continue to show care for each other, be considerate, and keep putting safety first — especially during times of change.”
BP said the cuts were part of a multi-year plan to make savings across the business, and that there may be more reductions this year and beyond.
Auchincloss added that the job losses announced on Thursday “account for much of the anticipated reduction this year”.
He said the company is “focusing resources on our highest-value opportunities” and that it has stopped or paused 30 projects since June 2024.
The reductions come as the London-based energy giant tries to bring more digital capabilities into the business, with artificial intelligence increasingly playing a role in engineering and marketing operations.
Auchincloss’s memo said that about 2600 of the contractors involved in the job cuts have already left the business.
In April last year, Auchincloss announced a plan to make savings of two billion dollars (£1.6bn) by the end of 2026.
The plan is designed partly to reinvigorate the company’s flagging share price, which has fallen about 20% since last spring.
BP has also pulled back from a number of renewable energy projects, and abandoned a previous plan to cut oil and gas output by 40% by 2030, according to reports.
Auchincloss continued that the company is still “uniquely positioned to grow value through the energy transition”.
“But that doesn’t give us an automatic right to win. We have to keep improving our competitiveness and moving at the pace of our customers and society,” he added.
It comes days after the oil giant delayed an investor event due to be held in New York to allow the CEO to recover after a medical procedure as it signalled weaker end-of-year trading.
Its scheduled capital markets event that was due on February 11 in New York will has been delayed until February 26 and will take place in London “to ensure his full recuperation”.
