BP to cut 4,700 jobs to reduce costs

British oil giant BP plans to lay off approximately 4,700 employees, representing over 5% of its global workforce, as part of its cost-cutting initiatives. The UK-based company, which employs around 90,000 people, confirmed the layoffs on Thursday, but has not yet disclosed the specific number of positions affected in each operating country.

An email sent to employees also confirmed that approximately 3,000 contractor positions will be cut this year. BP employs around 16,000 people in the UK, with about 6,000 working at gas stations and service stations, positions which will not be affected by the layoffs.

Chief Executive Murray Auchincloss announced his intention to simplify the business last year, and it is understood that he has set a target of cutting $2 billion (£1.6 billion) in costs by the end of 2026, with $500 million to be achieved this year. In an email to staff on Thursday, he stated: “We have more work to do this year, next year, and in the future, but we are making significant progress in making BP a simpler, more focused, and more valuable company.” It is understood that the layoffs will primarily target office positions, rather than operational roles.

Auchincloss added that he is aware of the "uncertainty this brings for those who may be at risk of redundancy, as well as for colleagues and teams." He also stated that around 2,600 contractors affected by the cuts have already left. The layoff announcement was made following a review of all BP divisions. The company has developed a multi-year plan to save costs in operations and has warned that there may be further job cuts in the future.

The energy giant is attempting to introduce more digital capabilities into its business, with artificial intelligence playing an increasingly important role in engineering and marketing operations. Auchincloss stated that BP is focusing its resources on "the most valuable opportunities," adding that the company has stopped or paused 30 projects since June 2024. In 2023, the company was criticized for scaling back its plans to reduce oil and gas production by 2030. The company had previously pledged to reduce emissions by 35-40% by the end of this decade but has now announced that it is adjusting its target to a 20-30% reduction, while maintaining investment in fossil fuels.

Auchincloss, who took over the company's leadership a year ago, is hoping to boost the company's declining share price by cutting costs; the stock has fallen by about 20% since last spring. His appointment came after the sudden departure of former CEO Bernard Looney, who was under scrutiny for personal relationships with colleagues. Auchincloss declared that the company remains "uniquely positioned to deliver value growth as we transition to renewable energy." He also added: "But this doesn't mean we are automatically entitled to success. We must constantly improve our competitiveness and stay in step with our customers and society."