Oil giant BP (BP.) plans to axe about 15% of its global workforce as it responds to the crippling effects of the Covid-19 pandemic. That works out at cutting about 10,000 jobs, according to news agency Reuters.
The workforce cut comes after the £75.5bn company announced that it would slash capital investment by 25% this year as the Covid-19 outbreak massively reduced global oil demand. Brent crude has lost roughly half of its value this year, currently trading at $32.80 per barrel, and nursed declines of close to 70% during the worst of the pandemic.
RETHINKING THE FUTURE
BP’s workforce rethink is part of chief executive Bernard Looney’s strategy to turn the carbon fuels major into a renewable energy supplier in the coming years. Last month the BP boss announced a substantial senior management shake-up, massively streamlining the company’s leadership team.
That came after plans were announced to rebalance the company into 11 divisions designed to ‘reinvent’ BP and tear down the traditional business model that was dominated by its oil and gas production, refining and trading operations.
Shares in BP rallied more than 3% in early afternoon trading to 373.7p, the highest they have been since the Covid-19 outbreak officially became a global pandemic.
