London, January 20: BP, formerly known as British Petroleum Company p.l.c., will reportedly cut 5% from its workforce to reduce its costs. The BP layoffs will also be announced as the company wants to rebuild investors' confidence in its energy stock. As per a report, the London-based petroleum company will take this job cuts decision amid the efforts of BP CEO Murray Auchincloss to bring down the costs.

Reuters reported that BP would lay off 5% of its global workforce, which would affect around 4,700 employees working with the petroleum giant. Further, the BP layoffs would also affect around 3,000 contractors. UK-based BP will reportedly announce the job cuts on January 23, 2025 (Thursday) through an internal memo. Commerzbank Layoffs: German Bank Likely To Lay Off Its Employees, Explores Thousands of Job Cuts To Avoid Unwanted Advances From Italy’s UniCredit.

Murray Auchincloss was appointed interim CEO of BP in September 2023 and is said to continue working as a board member. BP appointed Auchincloss as the previous Chief Executive Officer. Bernard Looney resigned after serving less than four years. The report mentioned that BP CEO Murray Auchincloss had already said that he would cut the costs of the company and help save up to USD 2 billion by the end of 2025. He also pledged that it would help BP boost its returns and address the investors' concerns about its energy transition strategy.

The report said that Murray Auchincloss was seeking to restore confidence after Bernard Looney's abrupt resignation in September 2023. Looney reportedly resigned because he "failed to disclose the relationship with  employees." Auchincloss said that BP would make strong progress and be positioned as a simpler and more focused company with high values. Meta Layoffs Coming in 2025: Mark Zuckerberg’s Company To Cut Mid-Level Engineers Roles To Save Millions To Continue Coding, Automation With AI, Says Report..

BP shares underperformed compared to other rivals in the industry, such as TotalEnergies, Shell, and Exxon Mobil, with a 5% drop. The new BP CEO took significant steps in reversing the strategy of Looney and would introduce a new one on February 26, 2025.

(The above story first appeared on LatestLY on Jan 20, 2025 10:40 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).