BP ideas to slash 15% of its workforce as it responds to the COVID-19 pandemic and shifts to renewable vitality.
“We will now begin a method that will see shut to ten,000 people today leaving BP — most by the finish of this yr,” main executive officer Bernard Looney claimed in a statement.
Roughly twenty% of the job cuts will be in the United Kingdom, exactly where BP employs 15,000 people today. The firm employs much more than 70,000 people today throughout the world.
“The the greater part of people today influenced will be in workplace-based employment. We are shielding the frontline of the firm and, as generally, prioritizing secure and reliable operations,” Looney claimed.
The firm ideas to slash cash expenses by $3 billion in 2020 and to slash working expenses by $two.5 billion by the finish of 2021.
Looney claimed BP would shift ahead with shell out rises for certain staff beginning in Oct and it would resume promotions “in a calculated way” beginning in July, but cash bonuses at the firm were being “very not likely this yr.”
BP noted $791 million in underlying replacement expense profits for the 3 months ended March 31, a drop of sixty six% yr-in excess of-yr but over consensus estimates. Its web personal debt rose to $51.four billion for the quarter.
Looney began as CEO in February and declared ideas to dismantle and restructure the firm and reinvent BP soon soon after. A spokesperson claimed the COVID-19 crisis “amplified and accelerated” BP’s transition to very low-carbon vitality.
“To me, the broader financial picture and our personal economic position just reaffirm the need to have to reinvent BP,” Looney claimed.
“While the exterior environment is driving us to shift more quickly — and possibly go further at this phase than we originally intended — the way of vacation continues to be the similar.”
Other international oil giants have declared job cuts in reaction to slipping rates. Chevron past thirty day period claimed it would slash between ten% and 15% of its international workforce, while Royal Dutch Shell began voluntary redundancies.