(qlmbusinessnews.com . Fri 17th Jan, 2025) London, UK —
BP Embraces AI and Digital Tech as It Reduces 5% of Global Workforce
British oil giant BP has announced plans to reduce its workforce by approximately 4,700 roles, representing over 5% of its global employee base. The move is part of a broader cost-cutting strategy aimed at streamlining the business and saving $2 billion (£1.6 billion) by the end of 2026. This year alone, the firm is targeting savings of $500 million (£400 million).
BP, which employs around 90,000 people worldwide, did not specify the number of redundancies in each country. However, its UK operations, employing approximately 16,000 people—including 6,000 in petrol stations—will see its frontline retail staff unaffected by these changes.
In an email to employees, BP’s Chief Executive Murray Auchincloss explained that the decision is part of a wider effort to simplify the organisation and focus resources on high-value projects. “While this process is undoubtedly challenging, it is crucial for positioning BP as a more streamlined, higher-value company,” Auchincloss stated.
The cuts will predominantly affect office-based roles rather than operational positions. In addition, BP will shed 3,000 contractor jobs, with 2,600 already exited from the business.
Shift to Digital and Renewable Focus.
BP is increasingly adopting digital technologies, including artificial intelligence, to drive efficiency in areas such as engineering and marketing. The company has halted or paused 30 projects since mid-2024, redirecting efforts toward its most promising opportunities.
Despite its focus on cost reductions, BP remains committed to its role in the global energy transition. However, the company faced criticism in 2023 for scaling back its initial pledge to cut oil and gas production by 35-40% by 2030. The revised target now aims for a 20-30% reduction.
Shareholder Pressure.
The restructuring comes as BP seeks to revitalise its share price, which has declined by about 20% since spring 2024. Auchincloss, who succeeded Bernard Looney as CEO last year, is determined to improve competitiveness and align BP’s pace with societal and customer demands during the transition to renewable energy.
While acknowledging the uncertainty this announcement brings for employees, Auchincloss reaffirmed BP's long-term vision: “We remain uniquely positioned to grow through the energy transition, but we must consistently enhance our competitiveness to achieve success.”
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