BP announces 8,000 layoffs in global restructuring plan
BP will lay off up to 5% of its workforce worldwide, the company announced on Thursday. This move means that thousands of employees will lose their jobs. The British oil giant noted that the layoffs aim to reduce costs and rebuild investor confidence.
In total, about 4,700 employees and 3,000 contractors will be laid off this year. BP employs close to 90,000 people. The staff was informed about the layoffs in an internal company memo sent via email, according to Reuters. Immediately after this information was released, BP's shares rose by 1%.
Reuters reminds us that CEO Murray Auchincloss announced in 2024 that by 2026, the costs of the British company would be reduced by at least $2 billion. This is partly to increase profits. According to the portal wnp.pl, "the funds generated in this way are to be allocated to debt repayment and investments in hydrocarbon extraction, especially natural gas." By announcing the layoffs, Auchincloss sought to restore trust following the sudden resignation of his predecessor, Bernard Looney, in September 2023.
Hungarian transfers
It is not exactly known who will be laid off and from which department. However, it is expected that the number of employees in the technology department will be reduced by over a thousand people. This reduction results from transferring part of the work from the USA and the UK to Hungary, India, and Malaysia.
In 2022, BP achieved record profits of $27.7 billion, more than double the $12.8 billion earned in 2021. This was driven by the Russian invasion of Ukraine, which led to sharp increases in oil and gas prices on the markets.
