BP to cut 5% of global workforce amid cost-saving push
BP is set to lay off up to 5% of its global workforce, the company announced on Thursday. This indicates that thousands of employees will lose their jobs. The British oil giant noted that the decision aims to reduce costs and rebuild investor confidence.
In total, about 4,700 employees and 3,000 contractors will be laid off this year. BP employs nearly 90,000 people. The staff was informed about the layoffs in an internal memo sent via email, according to Reuters. Following the announcement, BP's shares increased by 1%.
Reuters highlights that CEO Murray Auchincloss announced in 2024 that by 2026, the company's costs would be cut by at least 2 billion U.S. dollars (2.9 billion Canadian dollars). This is partly intended to increase profits. According to wnp.pl, "the funds generated in this way are to be used for debt repayment and investments in hydrocarbon extraction, especially natural gas." By announcing the layoffs, Auchincloss aims to restore trust after the sudden resignation of his predecessor, Bernard Looney, in September 2023.
Hungarian transfers
It is not precisely known who will be laid off or from which department. However, it is anticipated that the technology department will see a reduction of over a thousand employees. This is due to the transfer of part of the workload from the U.S. and the U.K. to Hungary, India, and Malaysia.
In 2022, BP achieved record profits of 27.7 billion U.S. dollars (39.8 billion Canadian dollars). This was more than double the 12.8 billion U.S. dollars (18.4 billion Canadian dollars) earned in 2021, primarily due to the Russian invasion of Ukraine, which led to sharp increases in oil and gas prices on the markets.
