In a bid to cut costs and enhance efficiency, BP announced on Thursday a significant workforce reduction, impacting about 4,700 employees, which represents over 5% of its global workforce of roughly 90,000. Alongside job cuts, the company will also eliminate around 3,000 contractor positions within the year. While the UK operation, which employs around 14,000 people, remains largely unaffected due to 6,000 positions centered on service stations, these layoffs are part of CEO Murray Auchincloss's broader objective to streamline BP into a more focused and technologically adept company. The goal is to achieve a $2 billion savings target by 2026, with $500 million of that slated for this year alone. Auchincloss acknowledged the uncertainty these measures bring to the workforce, particularly for those whose roles may be at risk, emphasizing the importance of digital advancements, including AI, in shaping the future of the energy giant.
BP Announces Significant Job Cuts to Streamline Operations
BP Announces Significant Job Cuts to Streamline Operations
Oil titan BP reveals plans to lay off approximately 4,700 employees as part of its cost-reduction strategy.
In an email addressed to staff, Auchincloss provided insights into the company's strategic direction, underlining the necessity for further improvement in the coming years. He acknowledged the emotional impact the layoffs may have on employees, stressing a commitment to transforming BP into a high-value entity better equipped for future challenges. The company's increasing reliance on artificial intelligence in various operational sectors reflects a shift towards modernization, adapting to market changes, and enhancing productivity, which ultimately aims to secure BP's competitive edge in the energy sector.