BP to cut 4,700 jobs to reduce costs
Published On Jan 16, 2025, 6:34 AM
BP is cutting about 4,700 jobs, more than 5% of its workforce, to reduce costs and improve efficiency. The company aims to save $2 billion by 2026, with $500 million targeted for this year. These cuts will focus on office-based roles rather than operational jobs. The CEO emphasized a shift towards digital capabilities and higher-value opportunities. Despite recent setbacks in its climate goals, BP is looking to improve its competitive edge and enhance shareholder value as its stock price has dropped around 20% since spring.
Stock Forecasts
BP
Positive
The job cuts and cost-saving measures are a strategic effort to improve profit margins and operational efficiency. However, the reduced targets for emissions and increased investment in fossil fuels might lead to mixed sentiments among investors who favor sustainable practices. As these changes position BP to streamline operations while maintaining some focus on renewable energy, the short-term outlook could be somewhat uncertain but potentially positive if the cost cuts effectively boost profitability.
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