Energy behemoth BP has announced plans to slash approximately 8,000 positions globally as part of a sweeping cost-cutting initiative. The FTSE 100-listed company confirmed on Thursday that 4,700 jobs will be cut from its workforce, representing over 5% of its total global staff of 90,000. Additionally, 3,000 contractor roles will be eliminated, with 2,600 of those already vacated.

The move follows a comprehensive review of BP's operations, spearheaded by CEO Murray Auchincloss, who took the reins in 2024 after Bernard Looney’s abrupt departure. Auchincloss has prioritized simplifying the business and achieving significant cost reductions, targeting $2 billion in savings by the end of 2026, with nearly 25% of that goal expected to be realized this year.

In an email to employees, Auchincloss acknowledged the gravity of the decision, saying, "We have more we need to do through this year, next year, and beyond, but we are making strong progress as we position BP to grow as a simpler, more focused, higher-value company." He added, "I understand the uncertainty this brings for everyone whose job may be at risk and the effect it can have on colleagues and teams."

While BP has not provided a breakdown of job cuts by region, the company employs 16,000 staff in the UK, including 6,000 in retail fuel forecourts.

This workforce reduction is part of BP's broader strategy to adapt to evolving market conditions. Last year, the company scaled back its ambitious emissions reduction plans. Under Looney, BP aimed to cut emissions by 35-40% by 2030, but Auchincloss revised that target to 20-30% while maintaining investment in fossil fuels.

At the ADIPEC energy conference in November, Auchincloss defended this shift, emphasizing the need for substantial new investment in oil and gas to ensure stable supplies. He noted, "The world will require considerable new investment in oil and gas, even as demand begins to settle in the coming years."

The decision reflects Auchincloss' intent to boost BP's underperforming share price, which has lagged behind its industry peers. BP’s shares hit a 52-week low of 365p in November, following its lowest quarterly profits in nearly four years, although they have since recovered to 428.65p as of Thursday morning, reflecting a 1.34% increase after the job cut announcement.

The market has responded positively to the news of the job cuts, viewing it as a step toward improving BP’s financial health and competitiveness. Analysts suggest the measures align with the company’s long-term strategy to balance profitability with its commitments to the energy transition.

Auchincloss reiterated BP’s readiness to adapt to the energy landscape’s rapid transformation. “BP is uniquely positioned to grow value through the energy transition to renewables,” he stated, while warning, “That doesn’t give us an automatic right to win. We have to keep improving our competitiveness and moving at the pace of our customers and society.”