leadf
logo-loader
viewBP PLC

BP to slash 10,000 jobs to save US$2.5bn amid oil price slump

In April, the firm reported a record US$4bn quarterly loss but maintained the dividend at 10.5 cents per share

BP PLC - BP to sack 10,000 staff to save US$2.5bn amid oil price slump

BP PLC (LON:BP.) is to cut 10,000 jobs to save US$2.5bn per year as the industry grapples with the oil price slump.

Chief executive Bernard Looney said most of them, representing 15% of its workforce, will be sacked by the end of the year, though he noted “we will likely have to go even further”.

READ: BP provides relief for hard-pressed dividend seekers

The FTSE 100-listed firm is planning to chop 25% of its capital expenditure this year, saving US$3bn.

Running the oil giant costs US$22bn per year, US$8bn of which are related to staff.

“The majority of people affected will be in office-based jobs,” he told employees in a webcast.

“We are protecting the frontline of the company and, as always, prioritizing safe and reliable operations.”

Those who wish to voluntarily leave the company were invited to submit a request next week.

Looney, who took the top job in February, said the restructuring was needed to cope with a ballooning debt pile as a result of the oil price crisis.

He said that net debt rose by US$6bn in the first quarter.

In April, the firm reported a record US$4bn quarterly loss but maintained the dividend at 10.5 cents per share.

Shares rose 2% to 370.3p on Monday afternoon.

Quick facts: BP PLC

Price: 255.05 GBX

LSE:BP.
Market: LSE
Market Cap: £514.3 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

FastForward Innovations' boss joins Leap Gaming board to spearhead 2021...

FastForward Innovations Ltd's (LON:FFWD) Ed McDermott, the group's chief executive, has been appointed to the board of Leap Gaming as a non-executive director. His expertise in running a listed company and the knowledge of the London market will be used to spearhead the virtual sports...

2 hours, 30 minutes ago

2 min read