BP to axe 10,000 jobs
BP has announced that it plans to make around 10,000 redundancies amid the global drop in oil demand brought about by the Covid-19 pandemic.
The worldwide lockdown restrictions brought in by many countries aimed at curbing the spread of coronavirus has seen demand for oil fall due to the lack of travel. This has seen prices tumble to as little as under $20 a barrel at the peak of the pandemic and had an adverse effect on the wider industry.
Staff were informed on Monday that BP plans to jettison around 15 per cent of its global workforce before the end of 2020.
It is unknown how many UK jobs are at risk, but the figure is believed to be in the region of 2,000. BP’s total UK workforce is comprised of around 15,000 people.
BP’s retail staff will not be hit by the redundancies, with office roles likely to be the most at risk.
In an email to BP staff, the firm’s chief executive Bernard Looney said: "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.
"It was always part of the plan to make BP a leaner, faster-moving and lower carbon company. Then the Covid-19 pandemic took hold. You are already aware that, beyond the clear human tragedy, there has been widespread economic fallout, along with consequences for our industry and our company."
BP had said back in April that it planned to pay shareholder dividends of $0.11 per share, and that payment is expected to be made before the end of June.