Dive Brief:
- BP plans to cut 4,700 jobs across its global workforce in addition to 3,000 contractor roles, according to an internal memo seen by C-Store Dive.
- This follows the company’s announcement last year that it would lower costs by $2 billion by 2026. In a statement, BP said the staff reductions are a result of “a series of programs” to lower costs, drive performance improvements and “play to our distinctive capabilities.” These include BP stopping or pausing 30 projects since June, as well as expanding its technology business and AI capabilities.
- A spokesperson from BP declined to share specifics on the company divisions and regions impacted by the layoffs.
Dive Insight:
While it’s unclear what impact this may have on BP’s retail and fuels business, the company’s spokesperson emphasized that BP’s total global employee count has grown significantly in the past year or two in the aftermath of various mergers and acquisitions. He noted that BP brought on an additional 20,000 employees when it acquired TravelCenters of America and its network of 300 travel centers in 2023.
When that deal closed, BP outlined plans to create what it called the “mobility site of the future,” which would support growing demand for lower-carbon mobility solutions. However, by late last year, BP reportedly abandoned some of its goals to cut its oil output.
In the memo sent to BP’s employees on Thursday, CEO Murray Auchincloss said the company has made progress but still has more work to do in positioning itself as a "simpler, more focused, higher-value company.”
In the memo, Auchincloss said the 4,700 staff cuts should account “for much of the anticipated reduction in our headcount this year.”
“I understand and recognize the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams,” Auchincloss said in the memo. “We have a range of support available, and please continue to show care for each other, be considerate, and keep putting safety first — especially during times of change.”
