Core Viewpoint - BP announced nearly 8,000 job cuts as part of a corporate cost-cutting initiative, which includes a reduction of 4,700 staff and 3,000 contractor positions, representing over 5% of its total workforce of approximately 90,000 personnel [1][2]. Group 1: Job Cuts and Workforce Reduction - The company confirmed the reduction of 4,700 staff and 3,000 contractor positions, with around 2,600 contractors having already left the business [1][2]. - BP did not specify the number of cuts by country, although it employs 16,000 staff in the U.K. [2]. Group 2: Cost Reduction Strategy - The job cuts follow a review of all divisions, initiated by CEO Murray Auchincloss, who aims to simplify BP's business and implement cost reductions of approximately $2 billion by the end of Q4 2026, with one-fourth of this amount targeted for this year [3]. - Auchincloss emphasized the need for ongoing improvements and competitiveness to adapt to customer and societal demands [8]. Group 3: Shift in Business Strategy - BP has scaled back its previous commitment to reduce oil and gas production by 2030, now targeting a 20-30% cut in emissions instead of the previously promised 35-40% [5]. - The CEO defended the need for new investments in oil and gas to maintain supply, despite potential demand stabilization in the coming years [6]. Group 4: Market Response and Share Performance - Following the announcement, BP's shares saw a positive market response, trading at 428.65p, up 1.34% from the previous day [7]. - The company's share price has been underperforming compared to its peers, having decreased by 5% since last year, with a notable drop from a high of 541p in April to a low of 365p in November [6][7].
Energy Giant BP To Cut Nearly 8,000 Jobs Worldwide