BP Announces Another Restructuring: "6,200 Job Cuts"

15% of Total Workforce
Comprehensive Review of Existing Business Strategy
Elliott Demands Additional $5 Billion in Cost Reductions

The Financial Times (FT) reported on August 5 (local time) that BP, the UK-based global energy company, plans to cut 6,200 office jobs, which accounts for 15% of its 40,000 office staff.

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BP stated that it intends to reduce 6,200 office positions by the end of this year, and projected that there will be significant additional savings in labor costs starting from the first quarter of next year.

Previously, BP had announced plans to cut 4,700 jobs this year. The company’s total workforce is approximately 100,000 employees.

BP CEO Murray Auchincloss told the FT in an interview, "Together with Albert Manifold, the incoming chairman of the board, we will conduct a thorough review of all company operations," adding, "We are also looking into further cost reviews."

This reassessment is an additional measure following BP’s announcement in February to fundamentally revise its existing business strategy. At that time, BP pledged to reduce costs by $4 billion to $5 billion compared to 2023 levels by scaling back clean energy investments and increasing oil production. The company also unveiled plans to sell assets worth $20 billion.

However, these strategies have failed to gain the confidence of investors, and BP’s share price remains about 10% lower than it was in February.

Elliott Management, an activist investment firm that holds a 5% stake in BP, is demanding even more aggressive measures than previously planned, including an additional $5 billion in cost reductions.

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