Oil giant BP is looking to go ahead with huge layoffs that will see the end of 4000 jobs across the company.
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In 2024, BP took a huge hit to its stock price. The oil companies' prices plummeted by a huge 16% giving serious cause for concern. You would think something as essential as oil would only ever climb, and yet BP is now having to make some serious cutbacks.
The BP layoffs are set to save the company around $2 billion. However, the cost will be huge to their employees. The 4000 jobs BP is looking to axe account for around 5% of their total workforce. This marks a huge cutback for the company, and a lot of people out of a job.
As well as the initial BP layoffs come plans to let many contracted employees go. Alongside the initial planned 4700, there will also be a further 3000 contractor positions closed.
The combined layoffs will hopefully pull BP from the nosedive their company's stock has taken.
Distribution Of BP Layoffs Is Uncertain
Despite confirming the cutting of thousands of jobs, BP has not been clear on where they will be distributed. These layoffs could be right at the top or mostly affect people at the bottom of the food chain. However, according to Reuters, approximately 1,100 roles are anticipated to be eliminated from BP's technology division.
These jobs will either be made redundant or moved abroad to be replaced with much cheaper labor. The positions are currently based in the US and UK. The jobs the BP layoffs will close down will be moved to countries such as India, Hungary, and Malaysia.
Over 2025 they plan to choose the cuts in staff. By the end of the year, all 4700 planned layoffs will be completed. This action looks to save BP an estimated $2 billion.
Over the coming years, it is reported that BP will pull a complete 180 on its goal to switch to renewables. According to the Auchincloss strategy, they will focus much more on BP's traditional oil and gas business. The gas and oil giant is going to pull back on investments in renewables.
