Oil major BP will cut thousands of jobs in a cost-saving drive

Major British oil company baby It said on Thursday that it plans to cut thousands of jobs as part of a major cost-cutting exercise.

“Today, we told employees across BP that the proposed changes announced so far are expected to impact around 4,700 jobs – this represents most of the reduction expected this year,” BP said in a statement.

“We are also reducing our contractor numbers by 3,000,” the company said.

The measures, designed to cut costs, come after Murray Auchincloss, CEO of BP He said Last year, the company intends to deliver at least $2 billion in cash savings by the end of 2026.

BP’s workforce currently numbers approximately 87,800 people.

The company’s shares were trading up 1.4% on Thursday morning.

BP has underperformed its European rivals recently as energy market participants Keep asking Company investment status.

In trading update published Weak refining margins and shifting activity will deal a $100 million to $300 million hit to fourth-quarter earnings, BP said on Tuesday, while further declines in oil production are expected.

The energy company is scheduled to announce its quarterly and full-year earnings on February 11.

BP said in the same update that it has postponed an investor event next month so its CEO can fully recover from a “planned medical procedure.” Auchincloss was said to be “recovering well” from the previously undisclosed procedure.

The capital markets event, which was previously scheduled to be held in New York on February 11, will now be held in London on February 26.

— CNBC’s Roksandra Iordas contributed to this report.