UK oil company BP cuts jobs to save costs
Date
1/28/2025 4:19:32 AM
(MENAFN) BP, the U.K.-based oil company, is implementing a global cost-saving strategy that includes eliminating 4,700 jobs and cutting an additional 3,000 contractor positions. CEO Murray Auchincloss informed employees in an email on Thursday, which was reviewed by The Associated Press, that these job cuts will account for a significant portion of the anticipated reductions this year.
The planned layoffs represent more than 5% of BP's total workforce of 90,000 employees. According to Auchincloss’s memo, around 2,600 of the affected contractors have already departed the company. In October, BP had announced it was aiming to achieve $500 million in cost savings this year as part of a broader goal of saving $2 billion by the end of 2026.
The company has also emphasized that it is refocusing its efforts on its most valuable opportunities, halting or pausing 30 projects since June. These changes are part of a broader push to incorporate more digital tools into BP's operations, with artificial intelligence becoming an increasingly important part of the company’s engineering and marketing functions.
The decision to reduce costs and shift resources comes as BP looks to boost its flagging share price, which has dropped by about 20% since last spring. BP has also scaled back its renewable energy efforts and abandoned its prior plan to reduce oil and gas production by 40% by 2030.
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