By Adam Whittaker


BP said it will cut 4,700 internal and 3,000 contractor roles in a bid to cut costs.

Employees at the British oil-and-gas giant were told of the job cuts Thursday via an email from Chief Executive Murray Auchincloss.

Auchincloss launched a multi-year program last year to simplify BP's business structure and cut costs. He is also seeking to close BP's valuation gap to British peer Shell, and to U.S. rivals that have seen their valuations rise in recent years.

In Thursday's email, Auchincloss said he wants to position BP "to grow as a simpler, more focused, higher-value company."

Under his leadership, BP has pulled back from some of its energy transition projects to refocus on hydrocarbon assets in an attempt to boost earnings and investor confidence.

Analysts at Barclay's warned last month that BP's high costs were undermining its available cash for buybacks and shareholder returns--the sustainability of which has continued to be questioned by analysts.

Thursday's job cuts--which represent around 5% of BP's workforce--form part of the at-least $2 billion savings target Auchincloss set in April last year.

BP shares were up 1.1% at 427.50 pence in midday European trade.

Earlier in the week, BP said that Auchincloss recently underwent a planned medical procedure and will return to the office by February.

As a result, the company pushed back and relocated its capital market day event to Feb. 26 in London, where he is expected to set out the company's new strategy.

The internal job cuts are subject to consultation and local regulations, the email said. Meanwhile, out of the 3,000 contractors affected by the cuts, 2,600 have already left BP, the email said.


Write to Adam Whittaker at adam.whittaker@wsj.com


(END) Dow Jones Newswires

01-16-25 0939ET