Chief executive Murray Aukinloss, who announced last year his intention to simplify the business, says he has set a target of $2bn (£1.6bn) of cost cuts by the end of 2026, with $500m of that to be saved this year .
In an email to employees on Thursday, he said: “We still have work to do this year, next year and beyond, but we are making great progress as we position BP to grow as a simpler, more focused and valuable company. company”.
It is understood that the cuts will apply to those working in office rather than operational roles.
The boss added that he recognized “the uncertainty this brings for everyone whose jobs may be at risk, and the impact it could have on colleagues and teams”.
According to him, about 2,600 contractors affected by the cuts have already left the business.
The announcement came after a review of all BP divisions. The company has a multi-year plan for savings across its operations and has warned that further job cuts could be in the future.
The energy giant is trying to bring more digital capabilities to the business, with artificial intelligence playing an increasing role in engineering and marketing operations.
Mr Auchincloss said BP was focusing its resources on “our highest value opportunities”, adding that it had stopped or suspended 30 projects since June 2024.
In 2023, the firm was criticized for scaling back its plans to cut oil and gas production by 2030.
The company previously promised to cut emissions by 35-40% by the end of this decade, but announced that now plan to cut 20-30% and keep investments in fossil fuels.
But Mr Auchincloss, who took over the firm a year ago, hopes his drive to cut costs will boost the company’s volatile share price, which has fallen about 20% since last spring.
His appointment follows the sudden resignation of his predecessor, Bernard Looney, amid a review of his personal relationships with colleagues.
Mr Auchincloss said the company remained “uniquely positioned to add value through the energy transition” to renewables.
“But that doesn’t give us an automatic right to win. We have to continue to improve our competitiveness and move at the pace of our customers and society,” he added.
