BP has announced plans to axe more than 4,700 jobs as part of its latest restructuring plans in a blow to the economy.
The oil industry giant is slashing over five per cent of its global total workforce as part of CEO Murray Auchincloss’ wider efforts to reduce costs for the business.
Earlier today, BP informed workers that 3,000 contractor positions would also be cut.
Said job cuts were confirmed in an internal memo seen by Reuters. Last year, Auchincloss pledged to reduce the British firm’s costs by at least $2billion by the end of 2026.
He cited his intention to bolster returns amid ongoing investor concerns over its energy transition strategy and after the sudden resignation of his predecessor Bernard Looney in September 2023.
Looney left the company after failing to disclose relationships with employees. The announced job cuts come after reviews of all of BP’s divisions and are expected to be made this year.
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BP is cutting thousands of roles in a blow to the economy
PA
As it stands, BP has a workforce of around 90,000 worldwide. The latest move from the company comes after recent figures from the Office for National Statistics (ONS) found the UK’s gross domestic product (GDP) grew by 0.1 per cent in November 2024.
In the memo, Auchincloss said: “We began a multi-year programme to simplify and focus BP last year – strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.
“We have got more we need to do through this year, next year and beyond, but we are making strong progress as we position BP to grow as a simpler, more focused, higher-value company.
“I understand and recognise the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams.”
Asda has also confirmed job cuts n
ASDA
Recently, other British companies have announced similar intentions to reduce their workforce in an attempt to navigate a challenging economic environment.
Last week, Asda chairman Allan Leighton laid out multiple cost-cutting measures, including redundancies, and warned the supermarket chain faced difficult decisions.
The retail giant confirmed 13 regional managers would be leaving the company as part of an overhaul of Asda’s senior leadership to cut costs and improve performance.
In a memo to employees, the supermarket revealed Asda stores will now be managed across 22 “sub-regions”, a significant call from the 30 before the cuts.
The bosses memo, as seen by The Telegraph, read: “Change is never easy and unfortunately we have had to say goodbye to a number of colleagues.”
An Asda spokesman said: “We made changes to our field-based retail team regions to reflect the scale of our business across large stores and convenience. These changes set us up to serve our customers in the best way for 2025 as we deliver Asda Price and other exciting propositions.”
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According to the National Institute of Economic and Social Research (NIESR), the UK economy’s growth is projected to stagnate in the fourth quarter of last year.
Specifically, the think tank’s analysis is pricing in for flatlining growth in the services and production sectors and a slight fall in the construction sector.
An early estimate for the first quarter of 2025 projects growth of 0.3 per cent, according to the NIESR.
The organisation added: “This is consistent with signals from the purchasing managers’ index and recent business and confidence surveys.”
