BP Eliminating 7,700 Jobs (5% Of Its Workforce) Because It Made Noises About Greener Energy Sources

[hatrack]

BP is to cut thousands of jobs from its global workforce, amounting to 5% of its staff, in an effort to save billions in costs to appease its worried shareholders. The oil company told staff on Tuesday that it would cut 4,700 jobs and scrap another 3,000 contractor positions, after its chief executive promised to reduce the company’s costs by at least $2bn (£1.6bn) by the end of 2026.

Murray Auchincloss has come under pressure from shareholders to improve BP’s returns amid growing dissatisfaction over the strategy set by his predecessor, Bernard Looney, before he was ousted from the top job for failing to disclose personal relationships with colleagues. In an internal memo to staff, first reported by Reuters, Auchincloss said he understood and recognised the “uncertainty this brings for everyone whose job may be at risk” and also “the effect it can have on colleagues and teams”.

EDIT

At the same time, BP revealed a worrying trading update for the final quarter of last year before its full-year results next month. The update warned that oil production for the last quarter would be lower than in the previous quarter, while the profit margins from its refining business would be “weaker” and its oil trading performance would be “weak”. BP has fallen out of favour with investors since Looney set out a plan to slash its oil and gas production in favour of spending billions on green energy projects. Under Auchincloss, the company has begun to dilute its climate pledges, but investors remain concerned over the returns BP can expect from its big-ticket green projects, including multibillion-pound plans to develop offshore windfarms off the UK coast.

BP’s shares have fallen by about 7% in the past year, while its rivals Shell, Chevron and ExxonMobil – which are pursuing higher oil and gas production – have seen their market values climb by 8% or more. The company was worth about £110bn before Looney was named as the next chief executive in late 2019, and now has a market capitalisation of less than £68bn.

Ed. - Gee, I wonder which parts of the business they'll cut/eliminate?

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https://www.theguardian.com/business/2025/jan/16/bp-to-cut-4700-jobs-3000-contractor-roles-costs

[jmbar2]

1. I used to work as a contractor for BP in Houston

Worked in a highrise industrial complex of buildings with a duckpond on the grounds.

There was a flock of vultures that roosted on the window ledges of the high rise, waiting for one of the ducks to get hit by a car. Then they'd bring their feast back up to the window ledge to eat it in full view of the conference room.

It became a metaphor for being a contractor at BP. Every 18 months or so, they would kill all the contractors and mid managers in massive layoffs. A few months later, they'd start hiring again, and the remaining managers would all announce new "initiatives" to make their management stripes.

It was an endless cycle.

[hatrack]

2. Sounds similar to what I've read about working at ExxonMobil . . .

Churning and burning the workforce, Jack Welch style.

[jmbar2]

3. True! My very first contractor gig was at Exxon.

Their performance review cycle was known as "rank and yank". It caused noticeable stress, depression and anxiety among the staff. No one was willing to take any chances.

Reminded me of stories of living under communism, where you were constantly under surveillance, and neighbors would rat you out. Most of the oil firms operated in a similar manner. It was brutal.