BP, the 5th largest oil and gas company by brand value, has announced a major restructuring plan to cut nearly 5,000 permanent employees and 3,000 contractors, worth over 5% of its global workforce. The move is part of a larger effort to eliminate $2 billion in costs by 2026.
The company’s revenue declined 14% year-over-year in 2023, to $210.13 billion USD, despite hiring over 20,000 new staff between 2022 and 2023. BP’s stock price fell about 17% in 2024, while its competitor Exxon Mobil saw a 5% increase.
BP is abandoning its target to grow renewable generation capacity from 50 gigawatts to 100 gigawatts by 2030, instead focusing on oil and gas. The company plans to divest certain assets and cut low-carbon investments to boost revenues. Activist investor Elliott Investment Management has been pushing for tighter cost discipline.
BP’s CEO Murray Auchincloss has vowed to make progress in reducing costs and increasing efficiency, but acknowledged that more work needs to be done. Industry leaders like Chevron, Exxon, and Shell have shifted their focus to traditional oil and gas due to high oil prices and evolving investor expectations.
The global energy market is experiencing a tightening of supply and demand, driven by reduced demand in China and anticipated financial constraints ahead. BP’s joint venture with Japanese power generator JERA marks a shift towards wind renewable energy, but the company remains focused on its core business.
Source: https://www.forbes.com/sites/chriswestfall/2025/03/01/major-oil–gas-company-cuts-jobs-drops-renewables-for-fossil-fuels