British energy giant BP is set to lay off nearly 4,700 employees and 3,000 contractors this year, the company told the Reuters news agency. This represents more than five percent of the workforce, with the company employing around 90,000 people in total.
The move is part of a cost-cutting effort to reduce expenses by at least two billion US dollars by the end of 2026, aimed at improving profitability and allaying investor concerns. A memo attributed to BP CEO Murray Auchincloss, seen by Reuters, states, “We have a lot to do this year, next year, and beyond, but we’re making significant progress in positioning BP to be a simpler, more focused, and more valuable company.”
Around 1,100 employees are expected to be let go or have their work relocated from the UK and the US to Hungary, India, and Malaysia, with further details on the job cuts not publicly disclosed.
Last year, Reuters reported that Shell intended to reduce its workforce by 20 percent, primarily in the exploration and development of oil and gas fields. This move was seen as part of the company’s effort to cut costs, with the goal of reducing expenses by three billion US dollars by the end of 2025.
Shell’s new management, in place since 2023, has linked its efforts to improve profitability with the aim of closing the significant gap in shareholder value compared to its larger US competitors. Both Shell and BP are also working to shorten their green energy programs, a move that has raised concerns among those who prioritize climate change.