BP Embarks on Major Restructuring Effort
Cost-Cutting Measures Aim to Boost Competitiveness
In a bid to revamp its operations and improve its bottom line, UK-based oil giant BP is set to axe 4,700 jobs globally, along with an additional 3,000 contractor roles. This drastic move is part of a broader cost-saving initiative aimed at streamlining the company’s operations and refocusing resources on high-value opportunities.
Digital Transformation Takes Center Stage
According to CEO Murray Auchincloss, the job cuts will account for a significant portion of the company’s anticipated reduction this year. As BP seeks to integrate more digital capabilities into its business, artificial intelligence is increasingly playing a key role in engineering and marketing operations. This shift towards digital transformation is expected to drive efficiency and competitiveness in the long run.
A Focus on High-Value Opportunities
Since June, BP has stopped or paused 30 projects, allowing the company to redirect resources towards more lucrative ventures. This strategic move is designed to reinvigorate the company’s flagging share price, which has plummeted by around 20% since last spring.
Renewable Energy Ambitions Take a Backseat
In a surprising turn of events, BP has scaled back its involvement in several renewable energy projects. Moreover, the company has reportedly abandoned its previous plan to reduce oil and gas output by 40% by 2030. Despite this, Auchincloss remains optimistic about BP’s unique position to grow value through the energy transition, emphasizing the need to improve competitiveness and adapt to the pace of customers and society.
CEO Recovery Delays Investor Event
The announcement comes on the heels of BP’s decision to postpone an investor event in New York, initially scheduled for February 11. The event has been rescheduled for February 26 and will take place in London, allowing Auchincloss to fully recover from a recent medical procedure.
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