BP is set to axe another 1,500 jobs and 1,200 contractor roles across its workforce by the end of 2025, bringing total expected redundancies to 6,200 as it ramps up its use of AI.
The figure, up from 4,700 cuts announced earlier this year and totalling around 15 per cent of its office-based staff, comes before Albert Manifold’s arrival a chair.
The oil giant has also confirmed that 3,200 contractor positions have already been eliminated since January, with further reductions to come as part of a broader review.
The restructuring forms part of a cost-cutting plan first unveiled in February, which aims to strip out up to £3.8bn in expenses by 2027.
The firm is also targeting £15.1bn in asset disposals over the same period, having removed £677m in costs in the first half of the year and £1.3bn since 2023.
The update comes amid growing pressure from investors to deliver stronger returns.
US activist investor Elliott Management recently disclosed a 5 per cent stake in BP, pushing for improvements in profitability and shareholder value.
CEO Murray Auchincloss said BP was continuing to explore ‘further cost savings’ and confirmed that a full portfolio review was underway following discussions with incoming chairman Albert Manifold, who takes over from Helge Lund this autumn.
“He and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximising shareholder value moving forward,” said Auchincloss.
“We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.
“BP can and will do better for its investors.”
Auchincloss also told analysts that technology is now driving cost reductions and improving productivity across its operations.
The cost cuts follow a challenging six months for BP, which reported a 32 per cent drop in underlying replacement cost profit to £2.81bn for the first half of 2025.
Auchinloss added: “We are two quarters into a 12-quarter plan and are laser-focused on delivery of our four key targets – and while we should be encouraged by our early progress, we know there’s much more to do.”
Manifold, who will step into the chairman role in October, previously led building materials group CRH for a decade and is expected to bring a sharper commercial focus to the business as it pushes forward with its transformation strategy.