BP has announced plans to cut 7,700 jobs as part of a cost-cutting strategy aimed at saving $2 billion by 2026. The company will also reduce contractor positions and focus on enhancing competitiveness. BP’s shift in strategy reflects its renewed emphasis on oil and gas investments amid challenges in the energy sector.
BP Announces Job Cuts as Part of Cost-Cutting Strategy
Energy giant BP has revealed plans to reduce its global workforce by 4,700 roles, alongside cutting 3,000 contractor positions. This brings the total job cuts to 7,700.
BP, which employs about 90,000 people worldwide, aims to save $2 billion (€1.9 billion) by 2026. CEO Murray Auchincloss first introduced these cost-cutting measures in April of the previous year. The company also plans to reduce an additional £500 million (€486 million) in costs by 2025.
In a statement, BP explained, “Last year, we launched a multi-year program to simplify and focus BP. Our goal is to enhance competitiveness, build resilience, and lower costs while leveraging our unique strengths. Today, we informed employees about the expected changes, which will impact 4,700 BP roles this year. Additionally, contractor numbers will decrease by 3,000.”
BP stressed its commitment to maintaining safe operations and supporting its workforce during this transformation.
Focus on Competitiveness and Adaptation
In an email to staff, Auchincloss acknowledged the uncertainty caused by these changes. “I understand the challenges this creates for those whose roles may be affected, as well as their colleagues,” he said.
He also emphasized BP’s potential: “We are a brilliant company with exceptional people, businesses, and assets. We are uniquely positioned to add value during the energy transition. However, success is not guaranteed. We must constantly improve our competitiveness and keep pace with the evolving needs of customers and society.”
The energy industry is under increasing pressure to invest in renewable energy projects, like wind and solar, to meet net-zero goals.
Renewed Focus on Oil and Gas
BP had previously committed to cutting oil and gas production by 40% by 2030 as part of its green transition. However, rising costs and poor returns prompted a reassessment of these plans.
BP has since decided to refocus on oil and gas investments. The company has scaled back its earlier commitment to prioritize green energy. This shift reflects the challenges faced by traditional energy firms as they balance sustainability with immediate economic needs.