BP to cut 4,700 jobs to cut costs

Oil giant BP is to cut around 4,700 jobs, more than 5% of its total workforce, as part of cost-cutting plans.

The British company, which employs around 90,000 people globally, confirmed the job losses on Thursday, but did not say how many roles would be affected in each country where it operates.

An email to employees also confirmed that about 3,000 recruiting positions will be cut this year.

BP employs around 16,000 people in the UK, around 6,000 of whom are in petrol and service stations, and will not be affected by the cuts.

Chief executive Murray Auchincloss, who announced plans to simplify the business last year, 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 staff on Thursday, he said: “We have more to do this year, next year and beyond, but we are making great progress as we position BP to grow as a simpler, more focused and higher value company.”

It is understood the cuts will apply to those in clerical jobs rather than operational roles.

The boss added, “the uncertainty that 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 had already gone out of business.

The announcement follows a review of all BP divisions. The company has a multi-year plan to make savings in its operations, and has warned that further job cuts may be in the offing.

The energy giant is trying to introduce more digital capabilities into the business, with artificial intelligence playing an increasing role in engineering and marketing operations.

Mr Auchincloss said BP was focusing its resources on “our highest value opportunities”, adding that it had stopped or paused 30 projects since June 2024.

In 2023, the company came under attack for reducing its plans to reduce the amount of oil and gas it produces by 2030.

The company had previously promised emissions would be 35-40% lower by the end of this decade, but announced now aim for a 20-30% reduction and maintain investments in fossil fuels.

But Mr Auchincloss, who took over the company a year ago, expects the cost-cutting plans to boost the company’s share price, which has fallen about 20% since last spring.

His appointment followed the sudden departure of his predecessor, Bernard Looney, in the midst of a review of his personal relationships with colleagues.

Mr Auchincloss noted that the company is still “uniquely positioned to drive value through the energy transition” for renewable energy.

“But that does not give us the automatic right to win. We must continue to improve our competitiveness and move at the pace of our customers and society,” he added.