BP to cut 10,000 jobs worldwide amid huge drop in demand for oil

BP has announced plans to cut 10,000 jobs, representing about 15% of the oil group’s 70,000 staff, by the end of the year.

Bernard Looney, BP’s chief executive, told employees that the job cuts were essential to enable the company to cope with a global collapse in demand for oil owing to the coronavirus pandemic. He said BP must reinvent itself and emerge from the crisis a “leaner, faster-moving and lower carbon company”.

The London-headquartered group has not said how many jobs will be lost in the UK but it is thought the figure could be close to 2,000. The changes are expected to significantly impact its senior ranks, cutting the number of group leaders by a third. The company said it will make the senior structure flatter.

“You are already aware that, beyond the clear human tragedy, there has been widespread economic fallout, along with consequences for our industry and our company,” Looney told staff in a company-wide email on Monday. “The oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make – I am talking millions of dollars, every day. And as a result, our net debt rose by $6bn in the first quarter.”

Looney, who took over as chief executive of 111-year-old BP in February, said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year. The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations.”

The Brent crude oil price started the year at about $64 (£50) a barrel, but plunged as low as $19 in April as the pandemic took hold. It has since recovered to about $35 a barrel.

BP’s share price was up 3% to 374p at 1:30pm on Monday. The shares, which were worth about 500p in January, had fallen as low as 233p in March.

Read the original article at The Guardian