The majority of the layoffs will come from office staff. (AFP)
London:
British energy giant BP announced Monday that it plans to cut “almost 10,000” jobs, or almost 15% of its global workforce, after the coronavirus pandemic has reduced demand for oil.
“We will now begin a process that will see nearly 10,000 people leave BP – most by the end of this year,” general manager Bernard Looney said in an email to his 70,000 employees seen in the media. .
He went on to say that oil prices had plunged “far below the level” the group needed “to make a profit”.
After companies around the world closed and airlines locked their planes late in the first quarter, oil fell off a cliff, causing prices to drop sharply.
Prices have rebounded strongly in recent weeks, however, with governments easing closings and businesses reopening slowly.
“It was still part of the plan to make BP a leaner, faster and less carbon-intensive business,” said the email from Looney, who recently took over the management of the group.
“Then the COVID-19 pandemic set in … The price of oil plunged well below the level we need to make a profit.
“We are spending much, much more than we earn – I’m talking about millions of dollars every day. And as a result, our net debt increased by $ 6 billion in the first quarter,” he added.
The majority of the layoffs will come from office staff.
“We protect the front line of the business and, as always, we prioritize safe and reliable operations,” said Looney.
BP will cut executive pay increases this year and likely cut cash bonuses, he added.
The company collapsed with a net loss of $ 4.4 billion in the first quarter, during which time Bob Dudley stepped down as group CEO after a decade at the helm.
Shortly after taking office, Irish national Looney set BP the target of achieving “zero zero” carbon emissions by 2050.
“It’s been a long time since we launched our new goal and ambition in February,” said Looney in his email.
“I am as excited and confident in the future of BP as I was back then. At the time, we talked a lot about the need to reinvent BP in order to stay competitive and achieve our ambition.”
Looney said it costs around $ 22 billion a year to manage BP.
“So we are reducing these operating costs by $ 2.5 billion in 2021 – and we will probably have to go even further,” he added.
BP’s share price rose 2.6% to 371.7 pence following the announcement, suggesting that the market was pleased with the company’s announcement of lower costs.
Brent crude oil prices fell 1.2% to $ 41.79 a barrel.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)
