Title: BP Announces Thousands of Job Cuts
BP, the British oil giant, revealed in a memo on Thursday that they're planning to trim around 4,700 permanent jobs this year. Additionally, they'll be letting go of 3,000 contractor roles, with 2,600 of them already vacating their positions.
Beginning in 2022, "we initiated a multi-year program to simplify and focus BP," a company spokesperson told CNN. The primary goal is to enhance competitiveness and bolster resilience by reducing costs, improving performance, and capitalizing on BP's unique capabilities. The spokesperson added that the workforce had expanded notably due to business acquisitions over the last couple of years. Unfortunately, they couldn't specify the distribution of these job cuts across the company's various businesses and regions, which include the United States.
In April 2023, BP CEO Murray Auchincloss established a target to reduce costs by $2 billion by the end of 2026, based on the 2023 level.
Auchincloss's memo to employees, shared with CNN, outlined that between June 2023 and present, BP halted or paused 30 projects. Furthermore, the company is intensifying efforts to digitize its operations and other actions.
In the early afternoon of Thursday in London, BP shares saw a 1% increase after the news was made public. However, BP's stock suffered a nearly 16% dip throughout 2024, as Auchincloss attempted to ease investors' concerns regarding BP's energy transition strategy.
Sources:1. [Enrichment Data]2. [Enrichment Data]4. [Enrichment Data]
The multi-year program aimed at simplifying and focusing BP involves reducing costs and improving performance within various business sectors. Despite the job cuts, BP continues to seek growth opportunities in its diverse business portfolios.
