BP announced plans to reduce its global workforce by over 5% in an effort to cut costs and rebuild investor confidence. CEO Murray Auchincloss aims to save at least $2 billion by the end of 2026 and address concerns over the company’s energy transition strategy. The cuts will affect around 4,700 employees and 3,000 contractor positions, with a total workforce of approximately 90,000.
The decision to downsize follows a review of all BP divisions, with Auchincloss emphasizing the need to simplify operations and focus on higher-value activities. The exact breakdown of the job cuts was not disclosed, but it is expected that around 1,100 roles will be eliminated through redundancies or by relocating work to other countries like Hungary, India, and Malaysia. BP’s shares have underperformed compared to its rivals, with Auchincloss set to unveil his new strategy at an investor day on Feb. 26.
In a move to reduce exposure to renewables, BP recently partnered with Japanese power generator JERA to form one of the world’s largest offshore wind operators. This shift in strategy marks a departure from the previous direction under Auchincloss’ predecessor, Bernard Looney, who stepped down following concerns over undisclosed relationships with employees. Auchincloss is focused on positioning BP for growth as a simpler and more focused company, with the aim of increasing shareholder value. BP’s upcoming fourth-quarter and full-year results will be published on Feb. 11.
