BP to cut thousands of jobs in strategic workforce overhaul
BP is set to lay off up to 5% of its global workforce, the company announced on Thursday. This means that thousands of employees will lose their jobs. The British oil giant noted that the move is aimed at reducing costs and rebuilding investor confidence.
In total, approximately 4,700 employees and 3,000 contractors will be made redundant this year. BP employs nearly 90,000 people. Staff members were informed about the redundancies through an internal company memo sent via email, according to Reuters. Immediately after this information was released, BP's shares rose by 1%.
Reuters reminds us that CEO Murray Auchincloss announced in 2024 that by 2026, the company's costs would be reduced by at least 2 billion US dollars (€1.9 billion). This is partly to boost profits. According to the wnp.pl portal, "the funds generated in this way are to be allocated towards debt repayment and investments in hydrocarbon extraction, particularly natural gas." By announcing the layoffs, Auchincloss sought to restore trust following the sudden resignation of his predecessor Bernard Looney in September 2023.
Hungarian transfers
It is not entirely clear who will be made redundant and from which department. However, it is expected that the technology department will see a reduction of over a thousand positions. This is due to the transfer of some work from the USA and the UK to Hungary, India, and Malaysia.
In 2022, BP achieved record profits of $27.7 billion (€26.9 billion). This figure is more than double the $12.8 billion (€12.4 billion) earned in 2021. These profits resulted from the Russian invasion of Ukraine, which led to sharp increases in oil and gas prices on the markets.
