Energy giant BP revealed plans to reduce its global workforce by 4,700 employees and 3,000 contractors, totaling 7,700 cuts.
The company, which employs around 90,000 people globally, is targeting cost reductions of $2 billion (€1.9 billion) by 2026. CEO Murray Auchincloss outlined this strategy in April last year, with an additional £500 million (€486 million) in cuts planned for this year.
In a statement, BP explained: “In 2024, we initiated a multi-year programme to simplify operations and focus our efforts. We aim to strengthen competitiveness, lower costs, improve performance, and leverage our distinctive capabilities. Today, we informed staff that 4,700 BP roles will be affected, representing a significant part of the planned reductions this year. Additionally, we are decreasing our contractor numbers by 3,000.”
BP emphasized its ongoing commitment to safe, reliable operations and support for its teams during this transition.
Balancing Resilience and Competitiveness
In an internal email, Auchincloss acknowledged the uncertainty these changes bring for affected employees and their colleagues.
“I understand the personal and team impacts these decisions create,” he wrote.
Despite the challenges, Auchincloss emphasized BP’s strong foundation. “We are a brilliant company with exceptional people, businesses, and assets,” he said. “We are uniquely positioned to create value during the energy transition.”
He warned, however, that success requires continued improvement. “Our competitive edge isn’t guaranteed. We must keep advancing to align with customer needs and societal demands.”
Renewed Focus on Oil and Gas Investments
BP, along with other oil and gas companies, faces growing pressure to invest in renewable energy projects as net-zero goals approach.
Although BP previously pledged to reduce oil and gas production by 40% by 2030, it has since reassessed this commitment. Rising costs and lower-than-expected returns have prompted a shift back to prioritizing oil and gas investments over green energy projects.
This strategic pivot reflects the company’s effort to remain resilient in a rapidly evolving energy landscape while addressing financial and operational challenges.