BP is cutting 5% of its workforce to regain investor trust after the scandal involving former CEO Bernard Looney
London: BP is making some big changes after the scandal with its former CEO, Bernard Looney. They’re cutting over 5% of their workforce, which means around 5,000 jobs are on the line. This move is part of CEO Murray Auchincloss’ plan to save costs and win back investor confidence.
According to an internal memo, about 4,700 employees and 3,000 contractor positions will be eliminated this year. BP has around 90,000 workers globally, so this is a significant cut. Interestingly, BP shares went up 1% in morning trading despite the layoffs.
Auchincloss has been vocal about needing to cut costs by at least $2 billion by 2026. He’s trying to address concerns about how BP is transitioning in the energy sector. He mentioned they’re making progress in becoming a more focused and valuable company.
The company has been in turmoil since Looney’s resignation last September. He stepped down after it was revealed he didn’t fully disclose personal relationships with colleagues, which violated company rules. Initially, he assured the board he was transparent, but new allegations led to a deeper investigation.
After finding out that Looney wasn’t completely honest, BP had to let him go immediately. His exit created a lot of uncertainty, especially since two top female executives also left the company around the same time.
Since June, BP has paused or stopped 30 projects to focus on the most profitable ones. They’ve been struggling to keep up with other oil companies and are now valued at less than half of Shell. Investors are getting anxious as BP’s stock has been on a downward trend, trading at just $31.30 recently.
