BP’s Chief Executive Officer Bernard Looney on Monday said that the British oil company planned to lay off 15% jobs in response to the coronavirus pandemic and as part of the company’s transition to renewable energy. Looney said that the plan would see 10,000 workforces leaving BP, most of them by the end of 2020.
The oil and gas major said that the layoff would mostly affect senior office-based positions, not front-line operational personnel. About 20% of the job reduction will take place in Britain, where the company employs 15,000 staff.
BP has announced to cut its $12 billion spending plans for this year by 25%. It also plans to implement digitalisation and integration of its businesses to save costs by $2.5 billion. However, Looney on Monday said that the company might need to slash costs even further.
The job reduction is also part of BP’s shift toward low carbon energy. According to the company’s spokesperson, the COVID-19 pandemic accelerated BP’s transition plan. CEO Bernard Looney said that he was creating 11 divisions to revise BP’s traditional structure which is dominated by oil and gas businesses.
Previously, fellow oil major Chevron Corp announced that it would cut 10% to 15% of its global workforce as part of a restructuring.
