In Depth: bp Cuts Thousands of Jobs to Save US$2bn

bp is one of the oil and gas supermajors and one of the world’s largest companies when it comes to revenue and profit.
It employs more than 87,800 people worldwide — a figure that is set to decrease as it slashes 5% of its workforce.
Last year, CEO Murray Auchincloss — who took on the role 12 months ago — declared intentions to simplify the business, with a cost reduction target of £1.6bn (US$2bn) by the end of 2026 on the horizon.
US$500m is to be saved this year and comes as 4,700 jobs and 3,000 contractor roles are set to be axed — amounting to 5% of bp’s workforce.
Why is bp cutting thousands of jobs?
Despite being one of the most profitable oil and gas giants, bp told staff on 16 January that thousands of jobs would go to reduce the company’s costs.
In a statement, bp said: “Last year, we began a multi-year programme to simplify and focus bp. We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.
“To deliver this, a series of programmes are in place in businesses throughout bp.
“Today, we have told staff across bp that the proposed changes that have been announced to date are expected to impact around 4,700 bp roles — these account for much of the anticipated reduction this year. We are also reducing our contractor numbers by 3000.
“As our transformation continues our priority will — of course — be safe and reliable operations and continuing to support our teams.”
Murray Auchincloss: bp’s CEO
Appointed after four months of acting as interim CEO, Murray Auchincloss officially became bp’s CEO in January 2024.
The Canadian business executive had previously served as CFO and has a 25-year tenure at the oil and gas multinational.
“The board is in complete agreement that Murray was the outstanding candidate and is the right leader for bp,” Helge Lund, Chair of bp, said on his appointment.
“His assured leadership, focus on performance and delivery and deep understanding of the opportunities and challenges in the energy transition will serve bp well as we continue our disciplined transformation to an integrated energy company.”
Murray says: “It’s an honour to lead bp — this is a great company with great people.
“Our strategy — from international oil company to integrated energy company — does not change. I’m convinced about the significant value we can create.
“Now, more than ever, our focus must remain on delivery — operating safely and efficiently, executing with discipline and always focusing on returns.
“This is how we will deliver real benefits for our customers and other stakeholders and continue to grow long-term value for bp’s shareholders.”
Explore the latest edition of Energy Digital Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Energy Digital is a BizClik brand