BP Reduces 10,000 Jobs to End of Current Year

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BP Plc will cut 10,000 jobs to save on costs in the pandemic and falling oil prices, The Financial Times writes.

BP CEO Bernard Looney said in an address to employees on June 8 that the company “spends much, much more” than it earns in connection with the pandemic.

In March, BP announced that it would not cut jobs for three months. Now that this period has expired and the company intends to reduce 15% of the 70 thousand employees by the end of this year.

According to Looney, the cuts will affect mainly BP office employees.

Last month, the British oil company announced its intention to halve the number of top managers – to about 120 positions from 250.

Looney, who took over as head of BP in February, is working to create a new operating and management structure for the company. BP set a goal by 2050 or earlier to reduce net carbon emissions to zero and to reorganize its units focused on gas and oil production to switch to cleaner fuels.

In April, Looney said in an interview with FT that the company plans to cut jobs at the end of 2020, as it seeks to cut costs and reorganize the business.

BP intends to reduce investment this year by 25%, or $ 3 billion, and next year plans to reduce operating expenses by $ 2.5 billion.

Looney has now warned that the company may have to make even more substantial cuts.

The company warned that paying cash bonuses is “highly unlikely” this year amid the effects of the economic crisis and the financial situation in BP itself.

The value of BP shares since the beginning of 2020 fell by 21.6%.