BP announces 10,000 job losses after coronavirus cuts demand for oil

8 June 2020, 15:54 | Updated: 1 September 2020, 09:58

BP will be cutting 10,000 people from its workforce this year
BP will be cutting 10,000 people from its workforce this year. Picture: PA

By Ewan Somerville

BP has announced plans to cut 10,000 jobs from its global workforce after oil prices took a major hit from the coronavirus crisis.

The oil giant had put redundancies on hold during the pandemic but told staff on Monday that around 15 per cent would be laid off by the end of the year.

The firm's office-based workers are expected to be hit hardest by the redundancies but all of its retail staff are set to stay employed.

The company, which employs 70,000 people globally - 15,000 of which are in the UK - said the move will “significantly impact senior levels” of management in the business, with its top leadership roles to be cut by a third.

BP said the cuts are part of plans for the business to cut its operating costs by 2.5 billion dollars (£1.9 billion) for new financial year, although the cuts “will likely have to go even further”.

In an email to staff, BP chief executive Bernard Looney said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year.

Retail staff will keep their jobs
Retail staff will keep their jobs. Picture: PA

“The majority of people affected will be in office-based jobs. “We are protecting the frontline of the company and, as always, prioritising safe and reliable operations.”

He added: “The oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make – I am talking millions of dollars, every day. And as a result, our net debt rose by six billion US dollars (£4.7 billion) in the first quarter.”

Group leaders and senior level leaders, who will be worst hit by the cuts, will also not be given any pay rises until March 2021 at the earliest, while BP will not pay any cash bonus this year.

Oil prices have slumped as a result of millions across the world being forced to stay at home during lockdowns. As a result, the cost of oil fell to less than $20 a barrel at the peak of the crisis, less than a third of the $66 it cost at the start of the year.

But it has since partly recovered to around $42 a barrel.

Listen & subscribe: Global Player | Apple Podcasts | Google Podcasts | Spotify

Latest World News

See more Latest World News

There have been almost daily reports of Palestinians being killed near aid sites since the GHF began operations

Dozens of Palestinians killed by Israeli gunfire near aid sites in Gaza

At least 27 have died after a boat capsized in Vietnam.

At least 34 dead and scores missing after Vietnam tourist boat capsizes

Poland, Warsaw Chopin airport

Poland investigating 'potential sabotage' after technical fault with air traffic control system

Around 30 people have been injured after a vehicle ploughed into a crown in Los Angeles

Los Angeles nightclub crash which left 30 injured may have been intentional, police say

Patrick Howlett, 58

Man who sent £56,000 to Philippines for livestreamed sexual abuse of children jailed for 30 years

The explosion happened at Biscailuz Center Academy Training.

At least three people killed in 'horrific incident' at Los Angeles sheriff training facility

Russian President Vladimir Putin

UK sanctions Russian spies at heart of Putin's regime over ‘campaign to destabilise Europe’

x

Daredevil Felix Baumgartner ‘died in mid air’ before crashing into hotel worker in front of horrified witnesses

Shortly before his death, the sporting sensation posted a video to social media showing himself paragliding in circles over a field.

Daredevil Felix Baumgartner dies in paragliding crash in Italy

Russia's President Vladimir Putin

Russia could launch 'preventative strikes' on the West if 'necessary', Putin ally warns

Wounded Palestinians, including Father Jebrail Romanelli, are brought to Al-Ahli Baptist Hospital after an Israeli attack targeted the Holy Family Church in eastern Gaza City.

Two worshippers dead after Israeli tank fire hits church in Gaza as Pope Leo calls for immediate ceasefire

Captain Sumeet Sabharwal is thought to have been suffering from mental health problems

Air India captain 'cut off' fuel before fatal crash, US officials say

Wilawan Emsawat has been arrested for allegedly having sex with monks and blackmailing them

Thai woman filmed herself having sex with Buddhist monks and blackmailed them

A few houses sit on a grassy area with mountain ranges in the background

Tsunami warning issued following 7.3 magnitude earthquake in Alaska

Shocking footage showed the stage at the iconic European dance festival in Boom, Belgium, engulfed in flames on Wednesday afternoon

Tomorrowland main stage destroyed by fire hours before festival start

As the news reporter is presenting - a huge explosion is captured erupting in the background.

Moment Israeli airstrike blasts Syria military HQ on live TV as news reporter flees in terror