BP announced on Thursday that it will be cutting over 5% of its global workforce in an effort led by CEO Murray Auchincloss to reduce costs and rebuild investor confidence following a recent scandal. The company will be slashing around 4,700 employees and 3,000 contractor positions out of a workforce of approximately 90,000. Auchincloss aims to cut costs by at least $2 billion by the end of 2026 to address concerns over the company’s energy transition strategy and improve returns. BP’s shares rose by 1% in morning trading in response to the news.
The scandal that rocked BP involved the resignation of former CEO Bernard Looney in September 2023. Looney stepped down due to the revelation of past personal relationships with colleagues that violated the company’s code of conduct. This led to increased uncertainty regarding the company’s direction and leadership. Auchincloss, who succeeded Looney, informed staff of the decision to cut jobs in a memo.
In the aftermath of the scandal, BP halted or paused 30 projects to prioritize profitability. The company’s market capitalization is now significantly lower than that of rivals, and its stock price has plummeted in recent years. Investors are calling for decisive action as BP continues to face challenges in the industry. The company is in the process of restructuring and refocusing to become a simpler, more valuable entity in the future.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.