BP has announced plans to reduce its global workforce by 7,700 positions, including 4,700 job cuts at the company and 3,000 contractor roles. The move comes as the energy giant faces weaker-than-expected oil and gas production, which is expected to impact its fourth-quarter results for 2024.

Restructuring to Improve Competitiveness

The job cuts are part of BP’s ongoing effort to simplify its operations and improve competitiveness in a challenging market. Chief Executive Murray Auchincloss emphasized that the company is focusing on resilience and cost reduction to ensure long-term sustainability. BP’s restructuring aligns with a multi-year transformation plan aimed at enhancing operational efficiency and strengthening the company’s position in the energy transition.

In a message to staff, Auchincloss acknowledged the uncertainty and stress caused by the job cuts, stressing that BP’s future growth will depend on continuously improving its competitiveness and adapting to customer and societal demands. While the company had previously set ambitious goals to reduce oil and gas production by 40% by 2030, it has since reassessed its strategy, focusing more on oil and gas investments as costs rise and returns remain below expectations.

Pressure to Adapt Amid Energy Transition

BP, like other major oil and gas companies, is under increasing pressure to invest in renewable energy sources, such as wind and solar, as part of the global push toward net-zero emissions. However, the company has faced challenges in shifting its focus away from traditional energy sources. The decision to refocus on oil and gas investments reflects the ongoing struggle to balance environmental goals with financial viability.

Despite these challenges, BP maintains that it is uniquely positioned to capitalize on the energy transition. The company is committed to improving its efficiency and competitiveness as it navigates a rapidly changing energy landscape.