BP to slash nearly 8,000 jobs as it looks to cut costs

London-listed supermajor BP (LON:BP) has confirmed plans to cut 8,000 jobs as it continues its plans to “simplify and focus” the company.

The oil giant plans to reduce its internal headcount by 4,700 while reducing contractor numbers by 3,000.

It is understood that staff were told about BP’s plans on Thursday morning as CEO Murray Auchincloss issued a statement to employees.

He said: “I understand and recognise the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams.

“We have a range of support available, and please continue to show care for each other, be considerate, and keep putting safety first – especially during times of change.”

Last year the company boss announced plans to cut costs by $2 billion (£1.64bn) by the end of next year and this move is set to play a part in the penny-pinching drive.

In the third quarter of 2024, BP saw profits slump by 18% to $2.3 billion (£1.8bn). Analysts had expected the drop in net income which was 30% less than the same period last year.

© Supplied by BP

The supermajor employs 90,000 people across its global operations. BP was asked what number of the 7,700 job cuts will come from the UK.

This comes as Unite the Union announced that its No Ban Without a Plan campaign received the backing of more than half of MSPs.

The union initiative which aims to save the jobs of offshore workers as the UK transitions to renewable energy has received the backing of 65 MSPs and 6 MPs on a list with 71 political backers.

However, Unite has shared that none of its supporters are representatives of the Green or Liberal Democrat parties.

This week also saw a committee hearing in which UK energy secretary Ed Miliband laid out plans to consult with North Sea stakeholders regarding the future of oil and gas licensing policy.

Previously, the Labour Party has discussed a ban on future North Sea oil and gas licences.

This week BP told shareholders that has delayed its capital markets event in New York to February as Auchincloss recovers from a recent medical procedure.

The oil giant said that the boss was “is recovering well”.

© Supplied by Kenny Elrick/DC Thom

A BP spokesman said: “Last year (2024) we began a multi-year programme to simplify and focus BP. We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.

“To deliver this, a series of programmes are in place in businesses throughout BP. Today, we have today told staff across BP that the proposed changes that have been announced to date are expected to impact around 4,700 BP roles – these account for much of the anticipated reduction this year. We are also reducing our contractor numbers by 3,000.

“As our transformation continues our priority will – of course – be safe and reliable operations and continuing to support our teams.”

The Labor government has also been criticised by UK oil firms for its tinkering of an already controversial taxation policy.

In the Autumn budget, chancellor Rachel Reeves confirmed that the headline rate of tax imposed on North Sea operators would jump to 78%. At the same time the government removed investment allowances that were afforded to operators under the Energy Profits Levy (EPL).

However, the Labour government retained the capital allowances outlined under the EPL, or windfall tax, something that is seen as key to getting new projects up and running.

BP employs 15,000 people in the UK with the majority based in the firm’s London headquarters and North Sea oil and gas production division.

A further 6,000 work in the BP petrol and service stations, however, these roles will not be affected by the cuts.