BP cuts 10,000 jobs after oil price collapse
BP chief executive Bernard Looney on Monday said the British energy giant would cut about 15% of its workforce after the novel coronavirus pandemic put further strain on an already-struggling industry.
“We will now begin a process that will see close to 10,000 people leaving BP — most by the end of this year,” said Looney in an email sent to staff members.
In the email, Looney noted that oil prices had collapsed, dropping “well below the level” that BP needed “to turn a profit.”
The cuts will largely impact senior office-based jobs, according to the company.
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‘Leaner, faster-moving and lower-carbon’
Oil prices plunged to historic lows in April as a result of sweeping restrictions on travel and mobility that formed part of core measures to curb the spread of the deadly pathogen. However, they have since recovered to around $40 per barrel, having spent most of 2019 in the region of $60 per barrel.
The collapse of oil prices came at a critical moment for BP and other oil companies, which were under immense pressure to manage their impact on climate change.
“It was always part of the plan to make BP a leaner, faster-moving and lower-carbon company,” said Looney.
Under pressure
Looney was appointed BP’s CEO in February with a mandate to manage the company’s place in a changing energy landscape.
After assuming the role, he moved swiftly to establish 11 new divisions to “reinvent” BP and restructure its business away from an oil-dominated enterprise.
BP has said it intends to eliminate or offset carbon emissions from its oil and gas business by 2050.
ls/msh (AFP, AP)
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