BP is set to eliminate an additional 1,500 jobs and 1,200 contractor roles across its global workforce by the end of the year, bringing total expected job losses to 6,200 – approximately 15 per cent of its office-based staff.
This figure, up from 4,700 cuts announced earlier this year, signals further potential reductions as the oil giant intensifies its cost-saving drive, partly through artificial intelligence (AI) efficiencies.
BP also confirmed 3,200 contractor roles have already been shed since January, with a further 1,200 set to be removed by the close of 2025.
The firm stated it would "continue to rigorously review the remaining contractor activity across our businesses and functions."
The prospect of more redundancies looms as executives plan additional cost savings and a "thorough" portfolio review, driven by mounting shareholder pressure. BP's 100,000-strong worldwide workforce is expected to undergo further scrutiny as part of this renewed efficiency drive.
While a country-specific breakdown for the latest job reductions was not provided, BP confirmed the cuts would impact both its UK and international sites.
The firm employed about 14,000 UK workers at the start of 2025.
It comes as chief executive Murray Auchincloss pledged the FTSE 100 firm would do “better for its investors” and said there was “much more to do” under its current three-year plan.
BP has been under pressure from shareholders to boost profits and cut costs, with activist investor Elliott Management recently taking a 5 per cent stake in the group.
Half-year profits on Tuesday showed profits tumbled by nearly a third as weaker oil prices weighed on earnings, although it posted a better-than-expected performance for the second quarter.
It reported a 32 per cent fall in underlying replacement cost profits – the group’s preferred profit measure – to 3.73 billion US dollars (£2.81 billion) for the six months to June 30.
Underlying profits fell 15 per cent year-on-year to 2.35 billion dollars (£1.77 billion) between April and June, although this was a significant improvement from 1.38 billion dollars (£1.04 billion) in the first quarter and better than most analysts had forecast, helping shares lift nearly 2 per cent.
BP is already working on a plan announced in February to cut costs by up to five billion dollars (£3.8 billion) by the end of 2027.
It has also said it will offload 20 billion dollars (£15.1 billion) of assets by the end of 2027.
The group’s results showed it has already stripped out 900 million dollars (£677 million) in costs over the first half, or 1.7 billion dollars (£1.3 billion) since 2023.
BP aims to ramp up its overhaul process following talks with incoming chairman Albert Manifold who starts next month, Mr Auchincloss said.
Mr Auchincloss said: “He and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximising shareholder value moving forward.
“We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.”
“BP can and will do better for its investors,” he added.
In a presentation to analysts and investors, Mr Auchincloss said AI was playing a key part in its overhaul, adding “technology is helping improve capital productivity and drive cost reductions across the portfolio”.
In another move to appease shareholders, the FTSE 100 firm also said it would buy back another 750 million dollars (£565 million) in shares and hike the quarterly dividend payout by 4 per cent.
Mr Auchincloss said: “We are two quarters into a 12-quarter plan and are laser-focused on delivery of our four key targets – and while we should be encouraged by our early progress, we know there’s much more to do.”
Mr Manifold was recently named to replace incumbent chairman Helge Lund after a difficult past few years in the role.
Formerly chief executive of building materials firm CRH for 10 years, Mr Manifold joins the oil giant as chairman-elect on September 1 before taking over as chairman on October 1.
