BP to Cut 6,200 Jobs, 4,000 Contractors Amid Focus on Oil and Gas Production

BP plans to cut 6,200 jobs and end work agreements with over 4,000 contractors by year-end, as part of a cost reduction effort to achieve $2 billion in savings by 2025. The cuts amount to about 15% of its global workforce, with most layoffs expected in Q4. The company is focusing on oil and gas production and has achieved $1.7 billion in cost reductions so far this year.

Global energy giant BP has announced plans to cut 6,200 jobs and end work agreements with over 4,000 contractors by year-end, as part of a cost reduction effort to achieve $2 billion in savings by 2025. The cuts, which amount to about 15% of its global workforce, are part of the company's broader strategy to strengthen its balance sheet and reverse years of underperformance [1].

The company has already slashed 3,200 contractor roles since January, with another 1,200 to go by the end of 2025. Most of the layoffs are expected to occur in the fourth quarter of this year [2]. BP aims to cut $4-5 billion in structural costs and spend $20 billion on assets by 2027, as part of its ongoing cost reduction and restructuring efforts.

The company's CEO, Murray Auchincloss, has emphasized that the cuts are not due to financial problems but rather focused on increasing returns for investors and returning to its roots in oil and gas exploration. BP has already achieved $1.7 billion in cost reductions so far this year, including $400 million from corporate overhead [2].

In a separate move, BP has announced the completion of a joint venture with JERA, Japan’s largest power generation company, to form JERA Nex bp. The new venture combines each company’s offshore wind assets to form a new equally-owned renewable joint venture. The companies said the new joint venture has a net potential generating capacity of 13 GW, establishing it as one of the largest offshore wind developers globally [2].

BP's latest job cuts and cost reduction measures come after the company reported a 32% fall in underlying replacement cost profits for the six months to June 30, as weaker oil prices weighed on earnings. However, the company's second-quarter performance was better than most analysts had forecast, helping shares lift nearly 2% [1].

References:
[1] https://www.eveshamjournal.co.uk/news/national/25365484.bp-increases-staff-cuts-6-200-signals-possible-reductions/
[2] https://finance.yahoo.com/news/bp-cutting-more-6-000-023823962.html
[3] https://www.ainvest.com/news/bp-cuts-costs-raises-3b-divestments-pressure-turn-business-2508/