Evading job cuts in 2025 is not an easy task. BP has announced layoffs again, with plans to eliminate 6,200 corporate positions this year. The company also expects to sever ties with 4,400 contractors by the end of the year, marking a significant increase from the earlier cuts predicted. BP’s corporate layoffs will amount to 15% of this segment of its workforce, and the goal here is to lower overall costs by around $2 billion before 2026.
Keeping with the changing times, the British oil giant BP is looking to step back from its exploration of renewable energy and return to its roots of oil production in order to meet the needs of the market. BP’s ongoing job cuts have been a matter of great concern for its employees ever since it first announced its plans to scale back on the workforce in January.
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BP Layoffs Set to Target the Organization’s Global Corporate Workforce
Earlier this year, reports on the BP layoffs suggested the organization would cut 5% of its global workforce. The company had intended to cut 4,700 corporate roles and 3,000 contractor roles, but in the company’s second-quarter earnings presentation this week, the company indicated that the numbers were going up further. BP currently employs 40,000 office workers and around 100,000 employees across departments globally, making it an impressive network of employees, but one that is vastly difficult to maintain.
Now, BP will cut 6,200 jobs from the corporate cohort, with reports suggesting the customer and products segment could continue to be targeted. HR Drive noted that about 60% of BP’s job cuts this year have centered around this division, which includes its global convenience store business.
BP’s “Fundamental Reset” Is Not a Result of Business Struggles
While the company is focused on cutting costs, BP’s ongoing job cuts are not a result of poor financial outcomes as is the case with other businesses that are turning to layoffs. The company is focused on increasing investor returns and preparing for its renewed focus on its oil sales. The company recently discovered new oil and gas fields off the coast of Brazil that should help vastly increase its output, considering it is one of the biggest oil and gas discoveries in 25 years.
“You just never plan on this amount of success, so we need to think about resource allocation,” Murray Auchincloss, CEO of BP, was quoted as saying. The company is targeting $4 billion to $5 billion in cost reductions against its 2023 baseline and has already achieved $1.7 billion in cuts and sold $3 billion of its assets, according to the reports. The BP layoffs have also affected its convenience store business to a large degree, but the reports are unclear about the extent of the effect.
The changes to the BP business model may be a good sign for investors and shareholders; however, the picture looks quite different for employees. The terms of the job cuts and the severance packages offered have not been revealed, but the BP corporate job cuts will leave a large number of workers unemployed in a job market that appears centered on firing rather than hiring more workers. The changes occurring in the employment sector have been hard for many to digest, leaving workers who are still employed equally anxious about the future of their jobs.
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