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Written by 2:18 pm Sustainable Manufacturing

BP to cut 4,700 jobs globally as part of cost-cutting drive

BP announced plans to eliminate 4,700 jobs within its global workforce, along with 3,000 contractor positions, as part of a cost-saving initiative. While the company did not reveal the exact number of job losses by country, these reductions represent just over 5% of its 90,000 employees worldwide.

BP employs approximately 14,000 people in the UK, with around 6,000 of them working at petrol stations and service locations, who will not be impacted by the cuts. CEO Murray Auchincloss informed staff of the layoffs in an email, which was shared with the PA news agency, on Thursday.

He 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.”

“We have a range of support available, and please continue to show care for each other, be considerate, and keep putting safety first — especially during times of change.” BP said the cuts were part of a multi-year plan to make savings across the business, and that there may be more reductions this year and beyond.

Mr Auchincloss added that the job losses announced on Thursday “account for much of the anticipated reduction this year”. He said the company is “focusing resources on our highest-value opportunities” and that it has stopped or paused 30 projects since June 2024.

The cuts are part of the London-based energy company’s effort to integrate more digital technologies into its operations, with artificial intelligence playing an increasing role in engineering and marketing functions.

According to Mr. Auchincloss’s memo, roughly 2,600 contractors involved in the job reductions have already left the company. In April of the previous year, Mr. Auchincloss revealed a plan to achieve $2 billion (£1.6 billion) in savings by the end of 2026.

This initiative is aimed, in part, at revitalizing the company’s underperforming share price, which has dropped about 20% since last spring. BP has also scaled back on several renewable energy projects and scrapped a previous plan to reduce oil and gas output by 40% by 2030, as reported.

Mr Auchincloss continued that the company is still “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,” he added.

It comes days after the oil giant BP delayed an investor event due to be held in New York to allow the CEO to recover after a medical procedure as it signalled weaker end-of-year trading.

Its scheduled capital markets event that was due on February 11 in New York will has been delayed until February 26 and will take place in London “to ensure his full recuperation”.

(With inputs from PA Media)

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