Oil giant BP has confirmed that it is to cut 10,000 employees, the equivalent of 15% of its global workforce this year as the company struggles with a decline in demand for oil.
According news agency Reuters, BP Chief Executive Bernard Looney revealed the news as part of a strategic overhaul as it seeks to shift its focus onto renewable energy.
The job cuts will predominantly hit top-management office positions rather than operational delivery staff.
Looney also stated that the large-scale redundancies were always ‘part of the plan’ as BP moves to low-carbon energy sources and becomes a leaner organisation.
It is also embarking on a mass cost-cutting exercising, aiming for $2.5bn in savings by the end of 2021 – accelerating the use of digital within its business and adopting a more integrated business structure between divisions.
BP’s share price edged higher to finish Monday 0.97% higher.