BP Shares Rise 0.83% as Restructuring Unfolds Trading Volume Drops to 305th Rank Amid 6200 Job Cuts and 2 Billion Cost-Cutting Push

BP shares rose 0.83% on August 6, with a trading volume of $0.38 billion, marking a 21.23% decline from the previous day’s activity and ranking 305th in market liquidity. The stock’s performance coincided with the company’s announcement of an expanded restructuring plan, including the elimination of 6,200 corporate roles—15% of its office workforce—by year-end, up from an earlier target of 4,700. Additionally, 4,400 contractor positions will be cut by 2025, exceeding previous projections of 3,000. The reductions, concentrated in BP’s customers and products segment, align with a broader cost-cutting initiative aimed at achieving $2 billion in savings by 2026. CFO Kate Thompson highlighted $1.7 billion in structural cost reductions already achieved, emphasizing a shift toward operational discipline and shareholder value creation.

The oil major’s cost-reduction strategy includes a potential further review of its global workforce and business portfolio amid shareholder pressure. CEO Murray Auchincloss confirmed ongoing efforts to optimize operations, including a $5 billion cost-cutting target by 2027 and the divestment of $20 billion in assets. Despite a 32% drop in half-year profits due to weaker oil prices, the company reported a 15% year-on-year increase in underlying profits for Q2, slightly outperforming expectations. BP also announced a $750 million share repurchase and a 4% dividend hike to bolster investor confidence. The restructuring comes as incoming chairman Albert Manifold prepares to lead a comprehensive portfolio review, signaling a renewed focus on profitability.

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