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Oil giant BP plans to cut about 4,700 employees, more than 5% of its total workforce, as part of its cost-cutting plans.
The British company, which employs about 90,000 people around the world, confirmed the job losses on Thursday, but did not mention the number of roles that would be affected in each country in which it operates.
An email to employees also confirmed that about 3,000 contractor jobs will be eliminated this year.
BP employs about 16,000 people in the United Kingdom, including about 6,000 who work at petrol and service stations, and will not be affected by the cuts.
Chief executive Murray Auchincloss, who last year announced his intention to simplify the business, is understood to have set a cost-cutting target of $2bn (£1.6bn) by the end of 2026, of which $500m will be saved this year.
In an email to employees on Thursday, he said: “We have a lot to do over 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.” “. a company.”
It is understood that the cuts will apply to workers in office jobs rather than operational roles.
The manager added that he recognizes “the uncertainty this brings to everyone whose job may be at risk, as well as the impact it can have on colleagues and teams.”
He said about 2,600 contractors affected by the cuts have already left the job.
This announcement comes after a review of all BP divisions. The company has a multi-year plan to make savings in its operations, and has warned that there may be more job cuts in the future.
The energy giant is trying to bring more digital capabilities into its business, with artificial intelligence playing an increasing role in engineering and marketing processes.
BP is focusing its resources on “our highest value opportunities,” Auchincloss said, adding that it has halted or halted 30 projects since June 2024.
In 2023, the company came under criticism for scaling back its plans to reduce the amount of oil and gas it produces by 2030.
The company had previously promised that emissions would fall by 35-40% by the end of this decade, but announced that it would do so. Now we are targeting a 20% to 30% reduction and maintaining investment in fossil fuels.
But Mr. Auchincloss, who took charge of the company a year ago, hopes his cost-cutting drive will boost the company’s sagging share price, which has fallen about 20% since last spring.
His appointment comes after the sudden departure of his predecessor. Bernard Looney is in the midst of a review of his personal relationships with his colleagues.
Mr. Auchincloss announced that the company remains “uniquely positioned to increase value through the energy transition” to renewables.
“But this does not give us the automatic right to win. We have to continue to improve our competitiveness and move at the pace of our customers and society,” he added.
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2025-01-16 12:21:00
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