BP To Make Global Job Cuts Mandatory : BP Layoffs 2020

Oil giant BP announced plans in June to lay off almost 15% of the 70,000-strong workforce to cut costs and "reinvent" business.



BP is looking forward to making around 7,500 mandatory redundancies after approximately 2,500 staff applied for voluntary severance. The company earlier revealed plans in June 2020 to lay off almost 15% of its total 70,000-strong workforce as a part of Chief Executive Bernard Looney’s plan to cut costs and “reinvent” the business.

Most of the layoffs will occur at the office-based staff in BP’s core oil and gas exploration and production division. Several workforces, including engineers, geologists, and scientists, are set to leave the company. This will, however, not impact frontline production facilities. “We are making progress towards fully defining ourselves as a news organization. We expect the entire process to complete soon and for all the staff to know their positions in the coming months,” a BP spokesperson stated.

BP Job Cuts

 The oil industry at present is facing one of its biggest-ever crises, with a low in the demand and oil prices due to the COVID-19 pandemic situation and the pressure from activists and investors across the world to tackle global climate change. In an internal memo, the company stated that out of 23,600 people who are eligible for voluntary redundancy, some 2,500 had applied, with about 500 people in senior positions. “This means around a quarter of the total headcount reduction that Bernard outlined in June will be a voluntary one,” the memo stated.

BP mandatory job cuts and redundancies

%. The company stated that voluntary redundancies were offered to staff in offices across 21 countries.

“We know that for a particular count of people, because of varied reasons, they feel that right now is the perfect time for them to leave BP company. However, for many others, it will still be a difficult decision,” the memo read. CEO Looney promised to reduce oil and gas output by 40% towards the end of this decade. This is a radical pledge on his part for an energy company, as he seeks to expand renewables production and recline more into offshore wind and solar power. Though many investors praise the decision, they also questioned the switch-to-renewable plan’s financial viability as these sources generate much lower returns.

BP To Slash 10,000 Jobs

At the present market, BP’s shares are at their lowest since 1995 when it was a small company, and the dividend yield stood at a staggering 13%. The company stated that voluntary redundancies were offered to staff in offices across 21 countries. The most prominent BP offices are located in London and Aberdeen in Britain, Houston in the United States, Baku in Azerbaijan, Luanda in Angola, and Oman and Trinidad and Tobago.

BP To Cut Oil And Gas Production

Forced redundancies in BP will now be based on the internal scores and rankings of the employees. “Losers will get a package and will walkout by the end of 2020; staff choice is brutal,” a BP source stated. Another BP source noted that the biggest challenge would be for the long time employees who will be trying to fill in new roles that would need skills and knowledge of the renewables business.

 “If you are an expert oil reservoir engineer, there are high chances of being retrained as a solar panel engineer,” the BP source stated. Gordon Birrell, BP’s head of oil and gas production operations and refining, earlier noted that a majority of the job cuts would come from his division. “The transformation of production and operations is significant; around 10,000 people will leave BP, and we’re in the midst of the process. A significant portion of the total number are from the production and operations department,” Birrell said.

Avatar
Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Elior acquires Nestor, the single meal food delivery startup

Elior acquires Nestor, the single meal food delivery startup

Elior, the corporate catering company, has acquired the French startup Nestor for an undisclosed amount. Nestor, a Paris, France-based food delivery service, started in 2015 with a
2 days ago
Axa gears to buy office space worth €800m in European cities

Axa gears to buy office space worth €800m in European cities

Axa Investment Managers, the French fund house, is not too worried about predictions that the post-pandemic world will see more people working from home and office real estates shr
3 days ago
ShareChat raises $502 million at $2 billion valuation

ShareChat raises $502 million at $2 billion valuation

ShareChat, the Indian owner of short video app Moj, has raised $502 million in the series E round of funding, pushing its value at $2.1 billion in the market. The five-year-old com
3 days ago
Small business groups form coalition to lobby for strong antitrust laws

Small business groups form coalition to lobby for strong antitrust laws

Small merchant groups are coming together to rally for strong antitrust laws to prevent big conglomerates like Amazon from swallowing up the smaller traders and businesses. Trade g
4 days ago
Vitol’s profit soars during 2020 oil crisis

Vitol’s profit soars during 2020 oil crisis

The world’s largest independent oil trader Vitol made record profits in 2020 as the fluctuations in the global energy markets resulted in a windfall. Vitol suffered an $85 billio
5 days ago
Seadrill proposes debt write off of $4.8 billion

Seadrill proposes debt write off of $4.8 billion

Seadrill Ltd., a deepwater drilling contracting company, owned by billionaire John Fredriksen, said it is ready to write off a debt of over $4.8 billion, giving lenders a 99 perce
5 days ago