BP has escalated its internal restructuring efforts, announcing additional job and contractor reductions as part of a broader strategy to cut costs, enhance efficiency, and boost investor confidence.
The company now expects to eliminate 6,200 roles globally—a notable increase from the 4,700 layoffs disclosed earlier this year. This figure includes 1,500 additional employee roles and 1,200 more contractor positions to be phased out by the end of 2025. The latest cuts represent roughly 15% of BP’s office-based workforce, with job losses expected across both UK and international operations.
This intensification of cost-cutting comes at a time when shareholder scrutiny is rising, particularly following the entrance of activist investor Elliott Management, which has acquired a 5% stake in the company.
AI and Automation at the Forefront
As part of the reorganisation, BP is accelerating its integration of artificial intelligence and emerging technologies to streamline operations and reduce overheads. CEO Murray Auchincloss emphasized that AI is being deployed to enhance capital productivity and enable sharper cost controls across business lines.
While technological adoption is being positioned as a strategic enabler, it also reinforces BP’s intention to shift toward leaner corporate structures. In total, the company has already removed 3,200 contractor roles since January, with more scheduled for termination before the close of 2025.
A Portfolio Review in Motion
In a bid to maximise shareholder returns, Auchincloss confirmed a thorough portfolio review is underway—a process initiated in coordination with incoming chairman Albert Manifold, who will officially take over on October 1. The review will focus on identifying underperforming assets and exploring divestiture options to unlock capital.
This aligns with BP’s February-announced plan to slash costs by up to $5 billion by 2027 and divest $20 billion worth of assets over the same period. The group reported that it had already saved $900 million in costs in the first half of the year alone.
Financial Performance and Investor Response
Despite a volatile energy market, BP’s Q2 earnings surpassed analyst expectations. However, underlying replacement cost profit—a core financial measure for the firm—fell 32% year-on-year to $3.73 billion in H1 2025. Quarterly profits between April and June dropped 15% to $2.35 billion, although this represented a rebound from Q1’s $1.38 billion and led to a modest 2% rise in share price.
To further demonstrate its commitment to shareholder value, BP announced a $750 million share buyback and a 4% increase in its quarterly dividend.
Leadership Transition and Cultural Reset
As BP prepares for a leadership transition, expectations are high. Manifold, formerly CEO of building materials conglomerate CRH, brings a reputation for performance-led transformation. His arrival signals not just governance change, but potentially a strategic cultural shift for the company amid investor demands for stronger financial discipline and vision.
In a note to stakeholders, Auchincloss was unequivocal:
“We are two quarters into a 12-quarter plan… there’s much more to do. BP can and will do better for its investors.”
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