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The energy giant BP, has announced plans to eliminate approximately 7,700 positions globally, marking one of the company's largest workforce reductions in recent years. CEO Murray Auchincloss revealed that 4,700 internal roles and over 3,000 contractor positions will be cut as part of a broader strategy to streamline operations and reduce costs.
The restructuring comes as BP faces mounting pressure to improve its market performance, with the company's value now less than half that of rival Shell Plc. In an email to employees, Auchincloss acknowledged the impact of these changes, 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."
This workforce reduction is part of a larger cost-cutting initiative aimed at saving at least $2 billion by the end of 2026. The company has already halted or paused 30 projects since June 2023, focusing resources on the most profitable ventures. A significant part of this transformation includes expanding artificial intelligence deployment across departments to enhance operational efficiency.
The announcement reflects a broader strategic shift at BP following the departure of former CEO Bernard Looney in September 2023. Under Looney's leadership, the company had embraced renewable energy and predicted peak oil consumption, investments that are now being reevaluated. Recent moves include slowing planned reductions in oil and gas output, pausing clean hydrogen projects, and announcing the spin-off of its offshore wind business.
BP's technology division will see approximately 1,100 roles affected through redundancies or relocation of work from the UK and US to Hungary, India, and Malaysia, according to an internal memo from technology division head Emeka Emembolu. The company's stock responded positively to the announcement, rising 1.2% to 428.1 pence in London trading, outperforming most European energy peers.
Auchincloss is expected to outline his complete strategic vision at an investor day scheduled for February 26. The CEO emphasized the company's trajectory, noting, "We are making strong progress as we position BP to grow as a simpler, more focused, higher-value company." This restructuring aligns with similar moves by industry competitors, including Shell's recent workforce reductions in its oil and gas exploration and low-carbon divisions.
