BP Speeds Up Job Cuts As Oil Prices Drop

The fall in crude has added “more focus to the simplification” of the business since the Deepwater Horizon disaster.

BP has said the falling price of oil means it is speeding up job cuts in the UK and abroad.

The company, which has around 15,000 employees in the UK and about 84,000 worldwide, has been undergoing a major rationalisation since the Deepwater Horizon disaster in the Gulf of Mexico in 2010.

Deepwater Horizon disaster

BP has been shedding a chunk of its business since the 2010 disaster

But the fall in crude prices – down almost 40% since the summer – had added “more focus to the simplification”, according to a spokesman.

However, the London-based oil giant was not “setting a number” in terms of how many jobs would be lost or where.

Since the 2010 disaster, BP has been shedding around £25.6bn ($40bn) of the business.

BP spokesman Robert Wine said: “We have sold about a third of the business but we are still set up for being that bigger company that we used to be.”

He said the job losses would be in the “head office and back office, not the frontline operations”.

Parts of the business in line to be slimmed down include the legal, procurement and HR departments.

Mr Wine said the job cuts would make the business more efficient, but they had not been caused by the fall in oil prices.

He said: “It’s certainly added more focus to the simplification that is going ahead but it certainly hasn’t been triggered by that.

“It’s added to the importance of getting the simplification right.”

He said more details of the company’s strategy were likely to be discussed at an analysts meeting in London on Wednesday.

BP’s third quarter replacement cost profits, reported in October, were £1.5bn ($2.4bn), down from £2bn ($3.2bn) in the same period last year.

 

 

 

 

 

 

Source : SKY NEWS

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