British oil company BP will cut thousands of jobs to cut costs. CEO Murray Auchincloss announced this in an email to employees.
In concrete terms, 4,700 jobs must disappear within the group and another more than 3,000 external employees. BP has also stopped about thirty projects in recent months to focus on the projects that generate the most money.
The interventions are part of a “multi-year program to streamline BP and give it more focus,” according to Auchincloss. The CEO announced last year that he wants to reduce costs within the company by at least $2 billion.
Factory in Ghent
The group did not clarify on Thursday in which countries the jobs will disappear. The internal job losses represent approximately 5 percent of the total workforce of 90,000 employees. BP is active in Belgium, including a factory in Ghent that employs around 200 people, according to the company website.
“I understand and recognize the uncertainty this brings to those whose jobs may be at risk, as well as the impact it may have on colleagues and teams,” the CEO wrote in the email.
The announced reorganization follows two days after a profit warning from the oil company. BP warned on Tuesday that profits in the fourth quarter of last year will be hit by lower profit margins on crude oil refining.