The energy giant announced earlier this week that weaker oil and gas production would hit its fourth-quarter results for last year.
Energy giant BP is to cut 4,700 jobs from its workforce across the globe and 3,000 from its contractor, making a total of 7,700.
The company employs some 90,000 employees worldwide. Its chief executive Murray Auchincloss in April last year set out to make some $2bn (€1.9bn) by 2026 and revealed in October that the company was planning cuts of £500m (€486m) that would be made this year.
In today’s statement, BP said: “Last year (2024) we began a multi-year programme to simplify and focus bp. We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.
“To deliver this, a series of programmes are in place in businesses throughout bp. Today, we have today told staff across bp that the proposed changes that have been announced to date are expected to impact around 4700 bp roles – these account for much of the anticipated reduction this year. We are also reducing our contractor numbers by 3000.
“As our transformation continues our priority will – of course – be safe and reliable operations and continuing to support our teams.”
Continuing need for competitiveness
In an email to staff earlier, chief executive Murray Auchincloss 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.”
After outlining the changes, he wrote: “As I’ve said before, we are a brilliant company with great people, great businesses and great assets – and we are 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. That’s what we are doing.”
The oil and gas giants have come under increasing pressure to invest in wind and solar projects as well as other renewables as net zero goals loom.
BP at one point pledged to cut oil and gas production by 40% by 2030. But it was forced to review the decision after rising costs and lower-than-expected returns.
It has since said it would return to refocusing on oil and gas investments, rather than changing direction towards green targets.
