British Petroleum, the U.K.-based oil and gasoline company commonly known as BP, is cutting nearly 5,000 jobs worldwide. Those cuts get even bigger when you factor in that the corporation is also slashing 3,000 contractors.
Last fall, BP announced that it had identified $500 million in cost-saving cuts this year, as part of a larger plan to reduce spending by $2 billion, by the end of 2026.
The Associated Press obtained an email from CEO Murray Auchincloss to staff, in which he said the company is focusing its resources on “our highest value opportunities.” He noted that 30 projects had stopped or been delayed since last June.
BP has underperformed compared to European rivals. In a report released on Tuesday, Jan. 14, BP said weaker refinery margins and turnarounds, which refers to maintenance, repairs and upgrade work on facilities or plants, led to a $100 to $300 million blow to profits in the fourth quarter in 2024. Further declines are expected in oil production.
BP is now trying to increase digital capabilities in its business as artificial intelligence takes on a greater role in engineering and marketing. Auchincloss said the company is uniquely positioned to grow value through the energy transition. It has also scrapped plans to reduce oil and gas output by 40% by 2030.
The job cuts amount to about 5% of BP’s entire workforce. Many contractors have already been let go. The current workforce stands at about 87,800.
