Title: BP Announces Planned Global Layoffs of Around 7,800 Employees
Energy titan BP, listed on the London Stock Exchange under the ticker LON: BP, announced a sweeping job reduction plan on Thursday, affecting around 8,000 roles worldwide. This represents approximately 5% of their global workforce, which stands at approximately 90,000 employees.
The company confirmed the reduction of 4,700 permanent positions, while 3,000 contractor positions will also be eliminated. However, BP CEO Murray Auchincloss noted in an email to the staff that around 2,600 of these contractors had already departed the company.
The job cuts span various countries, but BP refrained from specifying which nations or sectors will bear the brunt of these changes. The company employs 16,000 individuals in the UK, with 6,000 of them working at fuel retail forecourts.
The move follows a comprehensive review of BP's divisions, undertaken by Auchincloss, who assumed the CEO position in 2024 after the sudden departure of his predecessor Bernard Looney. The company aims to simplify its business and implement stringent cost reductions, estimated at $2 billion, by the end of 2026. Nearly a quarter of these savings are to be achieved by the end of this year.
In a message to his colleagues, Auchincloss acknowledged the uncertainties the job cuts bring, stating, "We have more to do this year, next year, and beyond, but we are making strong progress in positioning BP as a more focused, higher-value company."
Last year, BP revised its plans to decrease oil and gas production by 2030, a commitment made under Looney's leadership. The company will now target a 20-30% reduction while continuing to invest in fossil fuels.
Auchincloss defended this shift at the ADIPEC energy conference in Abu Dhabi, arguing that oil and gas require significant new investment to maintain supplies despite potential demand stabilization in the near future.
BP's share price has lagged behind its 'Big Oil' peers in recent times, leading Auchincloss to focus on boosting the company's performance. Since hitting a high of 541p in April, the share price has seen a 5% decline, with a recent dip to 365p in November, following BP's announcement of its lowest quarterly profits in nearly four years.
The stock market's response to the job cuts has been generally positive so far, with BP's shares trading at 428.65p on the London Stock Exchange, representing a 1.34% increase as of 9:00am EST on Thursday.
In his message to the staff, Auchincloss reiterated BP's commitment to growth in the renewable energy sector, emphasizing the need for continuous improvement and staying pace with customer and societal demands.
BP's job cuts, announced in January 2025, involve significant reductions across its global workforce. The company aims to reduce costs by $2 billion by 2026, part of a larger strategy to simplify its business and maintain competitiveness within the energy transition. Despite the uncertainty and potential impact on affected employees and sectors, BP's focus remains on targeting high-value opportunities and growing in the renewable energy sector.
- Despite the job cuts affecting around 8,000 roles worldwide, BP's share price on the London Stock Exchange, LON:BP, has seen a 1.34% increase, trading at 428.65p as of 9:00am EST on Thursday.
- BP CEO Murray Auchincloss, in his email to the staff, acknowledged the uncertainties brought by the job cuts but emphasized the company's commitment to positioning itself as a more focused, higher-value company.
- The FTSE 100 index has noted BP news, with the company's job cuts and focus on renewable energy cuts potentially impacting its position within the energy sector and the overall index.
- Auchincloss, in his defense of BP's shift towards investing in fossil fuels, pointed out that oil and gas require significant new investment to maintain supplies despite potential demand stabilization in the near future.
- In line with BP's net zero target, the company will now aim for a 20-30% reduction in oil and gas production by 2030, continuing to invest in fossil fuels while also focusing on growing its renewable energy sector.
