BP has announced a major cost-cutting initiative resulting in the elimination of 4,700 jobs and 3,000 contractor positions, impacting over 5% of its workforce. This move is part of CEO Murray Auchincloss’s strategy to reduce costs by $2 billion by 2026 and enhance the company’s competitiveness and resilience.
“We have got more we need to do through this year, next year and beyond, but we are making strong progress as we position BP to grow as a simpler, more focused, higher-value company,” Auchincloss said in a company memo.
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The cuts aim to simplify BP’s operations with a focus on high-value projects and the integration of digital technologies.
The decision follows challenges like falling production and prices, and is influenced by external pressures such as the windfall tax and the shift towards renewable energy.
BP emphasizes safety and support for affected employees during this transition.
The announcement has led to a slight increase in BP’s stock price, reflecting investor approval of the cost-reduction measures.
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