Oil giant BP has announced plans to cut approximately 4,700 jobs globally, representing over 5% of its workforce, as part of a strategy to reduce costs and streamline operations. The company will also axe about 3,000 contractor positions this year, it confirmed on Thursday.
BP employs roughly 90,000 people worldwide, including 16,000 in the UK, though roles in petrol and service stations—about 6,000 positions—will not be impacted. The company has not disclosed how the cuts will be distributed across the countries in which it operates.
Chief Executive Murray Auchincloss set a cost-reduction target of $2 billion (£1.6 billion) by the end of 2026, with $500 million to be saved this year. "We are positioning BP to grow as a simpler, more focused, higher-value company," he said in an email to staff.
The layoffs will primarily affect office-based roles rather than operational ones. Auchincloss stated that approximately 2,600 contractors affected by the cuts had already left the company. He acknowledged the uncertainty caused by the decision and its impact on staff morale.
The cost-cutting initiative comes after a review of BP’s divisions. The company has already stopped or paused 30 projects since June 2024. BP is also integrating artificial intelligence into its engineering and marketing operations as part of a broader digital transformation effort.
In 2023, BP faced criticism for reducing its commitments to cut oil and gas emissions. The company had initially targeted a 35-40% reduction in emissions by 2030 but later revised the goal to a 20-30% cut.
Despite this, Auchincloss reiterated BP’s commitment to the energy transition, emphasizing its potential to grow value through renewables. "But that doesn't give us an automatic right to win. We have to keep improving our competitiveness and moving at the pace of our customers and society," he said.
BP’s share price has fallen about 20% since spring 2024. The company’s leadership hopes that the cost-saving measures will restore investor confidence.
Auchincloss, who took over after Bernard Looney’s abrupt departure in 2024, remains optimistic about BP’s ability to thrive in a changing energy landscape. However, he warned that further cost-cutting measures could follow if needed.
