BP to Eliminate About 5% of Workforce to Cut Costs, CEO Says
Published On Jan 16, 2025, 12:00 PM
BP is cutting approximately 5% of its workforce, equating to about 4,700 jobs, as part of a larger strategy to cut costs and refocus on profitable projects. This includes the dismissal of over 3,000 contractor positions, with aims to reduce operating costs by $2 billion by 2026. The company has paused or cancelled 30 projects since June to prioritize those that maximize profitability. BP's CEO indicated this decision is part of a necessary shift back towards oil and gas production to regain competitiveness, particularly as BP's market value has substantially dropped compared to its peers.
Stock Forecasts
BP
Positive
BP's significant job cuts and focus on cost reduction may positively influence operational efficiency. If the company successfully pivots back towards oil and gas while improving profitability, it could regain investor confidence. However, concerns about its past strategic decisions and execution speed remain.
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