BP will cut 10,000 jobs after falling oil prices

BP will cut 10,000 jobs after falling oil prices

CEO Bernard Looney told workers Monday that the oil giant would cut its global workforce by almost 15% this year. Most cuts will affect office jobs.

The company said in February that it would reorganize its business to succeed net zero emissions until 2050 or earlier. The corona pandemic, which caused oil prices to fall as people hunted at home, only accelerated the need to reduce costs, Looney said.

Brent crude futures contracts, the global benchmark for oil prices, reached their lowest level in decades in April, falling below $ 20 a barrel. Since then, more than $ 42 per barrel has been returned and traded. But that’s even much lower than where prices started that year.

“Oil prices have fallen well below the level we need to make a profit,” said Looney, who took over BP’s top job earlier this year in an email to employees. “We’re spending a lot, a lot more than we’re doing – I’m talking millions of dollars every day.”

The BP also announced that senior leaders would not receive a pay rise until March 2021. It was also “very unlikely” that they would pay cash bonuses for 2020, the company added.

The company has so far resisted pressure to cut payments to shareholders, despite a $ 6 billion increase in its net debt in the first quarter. The board said it would reconsider whether it could pay dividends on a quarterly basis.

– Chris Liakos contributed to the report.

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