bp to cut 4,700 jobs as part of cost-saving plan

The job cuts will primarily affect office-based positions as the company looks to focus on digital technologies.

bp has announced plans to cut approximately 4,700 jobs, representing over 5% of its global workforce, as part of a cost-saving initiative to streamline operations. The company, which employs around 90,000 people worldwide, has not disclosed how the reductions will be distributed across its international operations. bp plans to eliminate 3,000 contractor roles by the end of the year, reports BBC.

The job cuts will primarily affect office-based positions, with operational roles remaining untouched. Chief Executive Murray Auchincloss aims to reduce costs by $2 billion (£1.6 billion) by 2026, with $500 million in savings targeted for this year. In an internal email, Auchincloss highlighted the company’s progress toward becoming "a simpler, more focused, and higher-value organization."

bp's strategy includes a greater emphasis on digital technologies, such as artificial intelligence, to enhance efficiency in engineering and marketing functions. The company has paused or discontinued 30 projects since mid-2024 to focus on what Auchincloss described as "highest-value opportunities." Despite these efforts, the company faces criticism for scaling back its climate targets, reducing its commitment to cut oil and gas production by 35-40% by 2030 to a revised target of 20-30%.

Auchincloss acknowledged the uncertainty the restructuring creates for employees, while reaffirming BP’s role in the global energy transition. "We are uniquely positioned to grow value through the shift to renewables," he stated, adding that BP must continue to improve competitiveness to keep pace with societal and customer demands.

The cost-cutting measures follow a comprehensive review of BP's operations and come amid efforts to revive its flagging share price, which has dropped 20% since last spring. Auchincloss, who succeeded Bernard Looney as CEO a year ago, has focused on revitalizing the company's performance while balancing traditional energy investments with renewable energy initiatives.