BP announced on Thursday that it will reduce its global workforce by over 5% as part of CEO Murray Auchincloss’ strategy to cut costs and rebuild investor confidence.
The energy giant plans to eliminate around 4,700 employee positions and 3,000 contractor roles this year, according to a statement shared with Reuters. These cuts were initially detailed in an internal memo seen earlier on Thursday.
BP shares rose 1% at 12:00 GMT following the announcement.
Last year, Auchincloss committed to reducing BP’s costs by at least $2 billion by the end of 2026 to address concerns over the company’s energy transition strategy and improve returns. He is also working to restore trust after the abrupt resignation of former CEO Bernard Looney in September 2023, following undisclosed employee relationships.
The workforce reductions come after comprehensive reviews of BP’s divisions. BP currently employs around 90,000 people.
“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,” Auchincloss said in the memo.
A separate memo from Emeka Emembolu, head of BP’s technology division, revealed that approximately 1,100 roles would be eliminated by redundancies or shifting work to locations like Hungary, India, and Malaysia. BP declined to comment on the memo.
Auchincloss will present his updated strategy at an investor day on Feb. 26. This plan marks a shift from his predecessor’s focus on renewables, exemplified by BP’s recent partnership with Japanese power generator JERA to form a leading offshore wind operator.
BP’s shares have underperformed compared to rivals like Shell and Exxon Mobil, with its fourth-quarter and full-year results expected on Feb. 11.