BP Slashes Workforce: A Strategic Move to Cut Costs and Regain Investor Confidence

BP is set to reduce over 5% of its global workforce, impacting 4,700 employees and 3,000 contractor roles. The cost-cutting initiative aims to save at least $2 billion by 2026 and restore investor confidence following the abrupt resignation of former CEO Bernard Looney.

BP announced on Thursday that it will cut over 5% of its global workforce, in a bid to slash costs and rebuild investor trust under the leadership of CEO Murray Auchincloss. This initiative will see 4,700 employees and 3,000 contractor positions eliminated within the year.

The move follows the unexpected resignation of former CEO Bernard Looney and is part of Auchincloss's broader strategy to tighten the company's budget by $2 billion before 2026. These measures align with BP's ongoing energy transition goals while addressing investor concerns.

Global energy sector dynamics see BP partnering with Japan's JERA to bolster its position in offshore wind operations, amid fluctuating stock performances and broader industry cost-cutting trends exemplified by competitors like Shell.

(With inputs from agencies.)