BP will cut 10,000 jobs after falling oil prices

BP will cut 10,000 jobs after falling oil prices

CEO Bernard Looney told employees on Monday that the oil giant would cut its global workforce by nearly 15% this year. Most of the cuts will affect office work.

The company said in February that it would reorganize its business to achieve net zero emissions by 2050 or earlier. The coronavirus pandemic, which caused oil prices to fall while people hunted at home, only accelerated the need to cut costs, Looney said.

Future crude oil prices of Brent, the global measure of oil prices, reached their lowest level in decades in April, falling below $ 20 a barrel. They have since established a return and last traded above $ 42 a barrel. But it’s still far below where prices started the year.

“The price of oil has fallen well below the level needed to make a profit,” Looney, who took over BP’s top job earlier this year, said in an email to employees. “Let’s spend a lot, a lot more than we earn – I say millions of dollars every day.”

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

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

– Chris Liakos contributed to the reporting.

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