In a measure aimed at improving profitability, BP is set to reduce its workforce by about 4,700 employees, alongside a significant number of contractor positions, totaling around 3,000. The company's global staff count stands at approximately 90,000, and the decision reflects a strategic shift toward a more technology-driven operation with an emphasis on artificial intelligence (AI) integration.
BP Plans Significant Job Cuts to Enhance Efficiency
BP Plans Significant Job Cuts to Enhance Efficiency
BP has announced plans to streamline its operations by cutting 4,700 jobs, affecting more than 5% of its workforce, in a bid to reduce costs and adopt digital strategies.
Oil giant BP has confirmed plans to cut around 4,700 jobs, representing over 5% of its total workforce, in an effort to streamline costs. The announcement, which came on Thursday, was made as part of CEO Murray Auchincloss's strategy to simplify operations and achieve a cost reduction target of $2 billion (£1.6 billion) by the end of 2026. This year alone, the firm aims to save $500 million.
Although BP employs around 14,000 people in the UK, the majority of those working in petrol and service stations, approximately 6,000, are not included in this wave of layoffs.
In a communication to employees, Auchincloss expressed awareness of the anxiety this news will bring to affected staff while emphasizing the need for the company to evolve into a simpler and more focused entity. As BP embraces technological advancements, particularly AI in engineering and marketing, the cuts reflect a broader trend in the energy sector's shift towards digital capabilities.
Auchincloss noted that out of the contractors targeted for termination, around 2,600 have already left the company. This rationalization comes at a crucial time as BP positions itself for growth in an increasingly competitive marketplace.
