BP Cuts Workforce Amid Energy Strategy Revamp

BP will cut over 5% of its global workforce as part of a strategy to reduce costs and rebuild investor confidence. CEO Murray Auchincloss aims to simplify operations and boost returns following the resignation of his predecessor. BP plans a major pivot towards oil and gas.

BP announced it will cut more than 5% of its global workforce in an effort spearheaded by CEO Murray Auchincloss to slash costs and revitalize investor trust. Approximately 4,700 employees and 3,000 contractor positions will be eliminated this year, according to information shared with Reuters.

Investors reacted positively with BP shares rising by 1.8% at 1110 GMT. Auchincloss aims to achieve at least $2 billion in savings by 2026, addressing investor concerns and refining BP's energy transition strategy. This move comes after Auchincloss's predecessor, Bernard Looney, resigned abruptly in September 2023 for undisclosed relationships with staff.

The cuts are part of a comprehensive review of BP's divisions. While exact details of the job eliminations remain undisclosed, BP maintains a workforce of around 90,000. In parallel, the company is reducing its renewables exposure by partnering with JERA to expand its offshore wind operations, indicating a strategic shift back towards core oil and gas activities.

(With inputs from agencies.)