Looney said in an email to staff on Monday that “the oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make – I am talking millions of dollars, every day. And as a result, our net debt rose by $6 billion in the first quarter.”
Looney, who took over as chief executive of BP in February, said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year. The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritizing safe and reliable operations.”
BP plans to cut 10,000 jobs as the coronavirus pandemic accelerates the company’s need to change the way it operates June 8, 2020
BP is not alone when it comes to cutting its 2020 spending plans, All of the world’s top petroleum companies have been affected by the coronavirus pandemic and the loss of revenues due to a drop in demand for oil worldwide, reports The Street.
BP has already flagged a 25 percent cut to $12 billion this year and said it would find $2.5 billion in cost savings by the end of 2021 through the digitalization and integration of its businesses. BP is not giving pay rises to senior employees until March 2021, and it is unlikely that there will be any cash bonuses this year.
“We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year,” Looney said in a statement, per Reuters.
