BP confirmed it is to cut its workforce by around 15 per cent, leading to an estimated 10,000 jobs as it seeks to adapt to the recent oil price crash and accelerate its transition towards cleaner sources of energy.
Chief executive Bernard Looney told employees in a global conference call that the company is to cut 10,000 jobs from its current 70,100 workforce, with most of the cuts expected to focus on senior office-based positions. Around 2,000 jobs are expected to go in the UK. Looney also confirmed that the company would be awarding no pay rises to senior staff until March 2021 at the earliest and indicated it was unlikely to pay any cash bonuses this year. He also suggested further cost reductions may be required.
Oil prices have fallen sharply in recent months as demand plummeted in response to coronavirus lockdown measures around the world. BP has previously said it is planning to cut its $12bn capital spending by 25 per cent this year and is looking to find $2.5bn of cost savings by the end of 2021. In an email to staff, Looney said the company had been planning significant restructuring following its recent pledge to become a net zero emission organisation, but the coronavirus crisis had accelerated those plans.
Oil prices fell sharply from $66 a barrel at the start of the crisis, reaching a low of under $20 before partially recovering to around $42 a barrel. The company also faced criticism from unions over its on-going plans to pay shareholder dividends, even as it cuts jobs.
Source: Business Green
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