BP announces accelerated plans to cut 10,000 jobs

BP has informed its staff that 10,000 jobs will be cut following the crash in oil prices earlier this year and as the company prepares for the energy transition towards lower carbon emissions.

The oil giant will let go of 14% of its workforce, mostly those in office-based jobs and senior roles, CEO Bernard Looney said in an internal note. The top 400 positions are expected to be cut by a third.

Senior management will also not receive pay increases this year, while junior and mid-ranking staff will only get them from October as BP looks to reduce costs after oil prices fell by around 60% in April from the start of the year due to a collapse in demand following the COVID-19 outbreak.

Looney told staff that the job cuts were in line with plans set out in February to prepare BP for deep reductions in carbon emissions, although the pandemic has accelerated the process, leading the company to “go deeper at this stage than we originally intended,” he said.

“We are spending much, much more than we make – I am talking millions of dollars, every day,” Looney wrote. “It currently costs around $22 billion a year to run the company — of which around $8 billion is people costs.” BP’s net debt rose by US$6 billion in the first quarter of 2020.

Recently appointed Looney announced in February that BP’s upstream and downstream businesses would be replaced by 11 more integrated teams. He also pledged to make the company largely carbon-neutral by 2050.