Why Has Energy Giant bp Cut 4,700 Jobs & 3,000 Contractors?

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bp is cutting 4,700 jobs and 3,000 contractor roles. Credit: Getty
bp is set to cut 4,700 jobs and 3,000 contractor roles, 5% of its staff, to help save the £1.6bn — and cost-cutting efforts are set to continue

bp is a leading name in the oil and gas supermajor league and ranks among the largest companies globally by revenue and profit. The company boasts a workforce exceeding 87,800 employees globally, though this number is set to diminish as bp plans to cut 5% of its staff.

CEO Murray Auchincloss — who took on the role 12 months ago — has set a clear goal to streamline the enterprise. He has announced a cost-cutting target of US$2bn by 2026.

US$500m is to be saved this year and comes as 4,700 jobs and 3,000 contractor roles are set to be axed — amounting to 5% of bp’s workforce.

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What are the driving factors behind BP's job cuts?

Despite being one of the most profitable entities in the oil and gas sector, bp conveyed to its staff on January 16 that it would be implementing substantial job reductions to decrease operational costs.

Workers at Whiting refinery, USa. Credit: bp

In a statement, bp said: “Last year, we began a multi-year programme to simplify and focus bp. We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities. 

“To deliver this, a series of programmes are in place in businesses throughout bp.

“Today, we have told staff across bp that the proposed changes that have been announced to date are expected to impact around 4,700 bp roles — these account for much of the anticipated reduction this year. We are also reducing our contractor numbers by 3000.

“As our transformation continues our priority will — of course — be safe and reliable operations and continuing to support our teams.”

A bp petrol station. Credit: Getty

Meet bp CEO Murray Auchincloss

Murray Auchincloss took the helm as bp’s CEO in January 2024, after serving four months as interim CEO. With a background as CFO and a 25-year history at the multinational, Murray was lauded as an exceptional fit for the role.

Murray Auchincloss, CEO of bp

“The board is in complete agreement that Murray was the outstanding candidate and is the right leader for bp,” Helge Lund, Chair of bp, said on his appointment.

“His assured leadership, focus on performance and delivery and deep understanding of the opportunities and challenges in the energy transition will serve bp well as we continue our disciplined transformation to an integrated energy company.” 

Murray says: “It’s an honour to lead bp — this is a great company with great people.

bp workers at Tangguh LNG, Indonesia. Credit: bp

“Our strategy — from international oil company to integrated energy company — does not change. I’m convinced about the significant value we can create.

“Now, more than ever, our focus must remain on delivery — operating safely and efficiently, executing with discipline and always focusing on returns. 

“This is how we will deliver real benefits for our customers and other stakeholders and continue to grow long-term value for bp’s shareholders.” 

Sustainability at bp

bp says it aims to reach net zero by 2050 or sooner and announced five aims to support this goal in February 2020.

These include:

  • Net zero across bp's operations on an absolute basis
  • Net zero in bp's oil and gas production on an absolute basis
  • A 50% cut in the carbon intensity of products it sells
  • Installing methane measurement at bp's major oil and gas processing sites
  • Reducing methane intensity of operations by 50%
  • Increase the proportion of investment into non-oil and gas businesses - US$7-9 by 2030.

As of 2023, bp said it has invested US$3.8bn into this transition. 

This includes growing its established bioenergy businesses, increasing its biofuels production and investing in EV charging.


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