BP raises spectre of hundreds more job losses as City gives verdict on turnaround plans

FTSE-100 energy giant BP remains a key player in the North Sea.

BP is to slash a further 1,500 jobs and 1,200 contractor roles across its global workforce by the end of the year and signalled possible further cuts as it doubles down on costs.

The oil major said it now expects 6,200 jobs to go - or about 15 per cent of its office-based workforce - which is higher than the 4,700 cuts announced at the start of the year.

It also said it had already slashed 3,200 contractor roles since January, with another 1,200 to go by the end of 2025, adding that it will “continue to rigorously review the remaining contractor activity across our businesses and functions”.

FTSE-100 energy giant BP remains a key player in the North Sea.

The FTSE 100 giant, which remains a key North Sea player, raised the possibility of further cuts as bosses unveiled plans to look for more cost savings and conduct a “thorough” review of its portfolio as it comes under pressure from shareholders. Its 100,000-strong global workforce will be reviewed further as part of the new push, BP confirmed. The firm employed about 14,000 UK workers at the start of 2025.

Chief executive Murray Auchincloss pledged the firm would do “better for its investors” and said there was “much more to do” under its current three-year plan. BP has been under pressure from shareholders to boost profits and cut costs, with activist investor Elliott Management recently taking a 5 per cent stake in the group.

Half-year results showed profits fell by nearly a third as weaker oil prices weighed on earnings, although it posted a better-than-expected performance for the second quarter. It reported a 32 per cent fall in underlying replacement cost profits - the group's preferred profit measure - to $3.73 billion (£2.81bn) for the six months to the end of June.

The group’s results showed it has already stripped out $900 million (£677m) in costs over the first half, or $1.7bn since 2023.

In another move to appease shareholders, the firm said it would buy back a further $750m in shares and hike the quarterly dividend payout by 4 per cent.

AJ Bell investment director Russ Mould said: “Having already teased these quarterly results last month, the reaction to BP beating expectations is understandably fairly muted. However, as the company looks to bat off pressure from activist shareholder Elliott and convince the wider market on its recent shift in strategy, updates like today’s are helpful for management credibility.

“Despite already announcing a round of significant cost cutting, further efficiencies will be sought. At present BP still has a modestly larger workforce than Shell - based on the companies’ respective last reported headcounts - despite being a significantly smaller business in terms of its valuation and annual revenue.”

Lale Akoner, global market analyst at eToro, noted: “Overall, we think that this quarter is a sign of regained discipline and strategic clarity. After years of mixed signals, BP is now showing it can balance near-term performance with long-term potential.

“The focus on execution, capital discipline and shareholder returns is paying off. If it can keep this up, sentiment around the stock and the story could shift meaningfully.”

BP to axe 4,700 jobs globally amid cost-cutting drive