BP axes 4,700 jobs in cost-cutting drive

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BP is cutting 4,700 jobs, or just over 5 per cent of its workforce, as part of an effort to save $2bn of costs and revive its share price.

The energy company also plans to cut the number of contractors it uses by 3,000 this year, adding that 2,600 of those had already departed, according to a memo sent to staff by chief executive Murray Auchincloss.

In the email on Thursday, Auchincloss said the group was making “strong progress” to be a “simpler, more focused, higher-value company” but warned that the cuts only represented this year’s target.

Last year, Auchincloss announced a plan to trim $2bn of BP’s costs by 2026.

BP shares rose nearly 2 per cent in morning trading, but have fallen 5 per cent since Auchincloss became chief on a permanent basis 12 months ago. The share price has lagged behind that of rivals, including Shell, ExxonMobil and Chevron.

This is a developing story