British Petroleum (BP) told staff just recently that it is going to cut 4,700 jobs and scrap another 3,000 contractor positions. This is a major move and comes after the CEO promised to reduce the company’s costs by at least $2 billion by the end of 2026.
In an internal memo to staff, the top executive at BP said he understood and recognised the uncertainty this brings for employees. Murray has been under a lot of pressure from shareholders to improve BP’s returns.
There is also considerable dissatisfaction about the strategy set by the former CEO Bernard Looney. He had set out a plan to slash BP’s oil and gas production in favour of spending billions on green energy projects.
Under Murray, the company appears to be diluting its climate pledges. But the company’s shares have fallen by about 7% in the past year. Competitors such as Shell, Chevron and ExxonMobil are pursuing higher production and seeing a rise in market values.
