BP Announces Major Job Cuts Amid Shareholder Pressure

BP has confirmed plans to eliminate 4,700 jobs and 3,000 contractor positions, representing about 5% of its global workforce, as part of a strategy to save £1.6 billion. This decision follows growing concerns from shareholders over the company's financial performance and its shift towards green energy initiatives.

In an internal communication, BP's Chief Executive Murray Auchincloss acknowledged the uncertainty these cuts bring to affected employees and emphasized the company's commitment to simplifying operations and improving competitiveness. Despite the restructuring, BP has faced scrutiny due to disappointing financial results, prompting the need for significant cost reductions.

The oil company, which employs approximately 87,800 people worldwide, also warned of reduced oil production in the final quarter of the previous year and noted weakened profit margins in its refining business. The announcement comes as BP re-evaluates its climate commitments, aiming to reassure investors who have shown preference for rivals that continue to focus on oil and gas production.

BP's shares have dropped roughly 7% over the past year, in stark contrast to the performance of competitors like Shell and Chevron, whose stock values have risen. The company will seek to address these concerns at an investor event in London, which was rescheduled to February due to Auchincloss's medical recovery.