BP Slashes Nearly 8,000 Jobs Globally in Major Cost-Cutting Drive

In a significant move that signals a strategic shift in the energy sector, BP announced today it will cut 4,700 permanent positions and eliminate 3,000 contractor roles worldwide as part of an extensive cost-reduction initiative. The cuts, representing approximately 5% of BP’s 90,000-strong global workforce, mark the first major decision by CEO Murray Auchincloss since taking the helm.

The London-based energy giant’s restructuring comes amid mounting pressure to improve its financial performance and share price, which has fallen about 20% since last spring. The company aims to achieve cost savings of £1.6 billion ($2 billion) by the end of 2026.

While BP employs around 14,000 workers in the UK, the company has not disclosed country-specific impact details. However, it confirmed that the 6,000 employees working in UK petrol and service stations will not be affected by these cuts.

In an internal memo to staff, CEO Murray Auchincloss acknowledged the human impact of these decisions, stating, “I understand and recognize the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams”. The company has promised to provide support for affected employees during this transition period.

The restructuring extends beyond job cuts, with BP having already paused or stopped 30 projects since June 2024. This realignment reflects a broader shift in BP’s strategy, including a pullback from several renewable energy projects and a departure from its previous commitment to reduce oil and gas output by 40% by 2030.

The market responded positively to the announcement, with BP’s shares rising 1.6% to 429.90p in London trading, outperforming most European energy peers. This reaction suggests investors support the company’s efforts to streamline operations and improve profitability.

The job cuts come at a crucial time for BP, which recently warned of weaker fourth-quarter results due to reduced oil and gas production, lower refining margins, and decreased trading performance. The company has also postponed its February investor event to London from New York, allowing CEO Auchincloss time to recover from a planned medical procedure.

This restructuring represents a significant pivot in BP’s corporate strategy, as the company balances its traditional oil and gas operations with the growing pressure to adapt to clean energy transitions. The move also reflects broader industry trends, where major energy companies are reassessing their positions in the evolving global energy landscape.