In a strategic move to bolster its financial standings, British oil giant BP has announced a significant restructuring initiative aimed at reducing its workforce by 5 percent. This decision, revealed by CEO Murray Auchincloss, aligns with BP’s objective to achieve a cost-saving target of at least $2 billion (approximately 1.9 billion euros) by the close of 2026. Included in this restructuring plan is the termination of contracts with three thousand hired workers. Details of the workforce reduction were shared in an internal email to BP staff, obtained by Reuters and Bloomberg news agencies.
With a global workforce of roughly 90,000 employees, the impact of these cuts is expected to be significant, though specific details regarding the restructuring have yet to be disclosed. Furthermore BP has also forecasted weaker-than-expected financial results for the last quarter of 2024. These disappointing projections are attributed to diminished oil and gas production, unfavorable refining margins, and recent market price volatility.
This follows BP’s previous announcement of a $2 billion savings target by 2026, a goal that the company aims to meet partly through these workforce reductions. The oil industry giant’s strategic adjustments underscore the ongoing challenges and dynamic operational landscape it faces.