BP to cut 500 jobs this year

Oil price increases in recent months have not kept BP from carrying out further cost reductions. Over 500 employees will be dismissed this year.

Photo: Aker BP

UK oil company BP will fire up to three percent of employees within production this year, reports Financial Times.

The layoffs will take place globally and impact research and production. Of BP's total 18,000 production employees, three percent – 540 employees – will be dismissed. The layoffs will be carried out despite the fact that global oil prices have increased to over USD 80 per barrel in recent weeks without the prospect of decline. The price was last over USD 80 in 2014.

BP reveals that the dismissals will take place to meet the continued need for efficiency improvements and production optimization.

"This is part of the ongoing process across BP to modernize its business to adopt more efficient ways of working and also to further simplify our organization and increase efficiency following the USD 50 billion worth of divestments over recent years," said BP.

In the first quarter 2018, BP landed an adjusted profit and an adjusted deficit (EBIT) of USD 2.59 billion, while according to Bloomberg News analysts expected a USD 2.12 billion profit where estimates had ranged from USD 1.9 to USD 2.32 billion.

The adjusted operating profit ended at USD 4.68 billion, whereas analysts expected a USD 4 - 4.55 billion result.

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