BP boss makes job cuts, but sticks to “integrated” strategy

BP is cutting 4,700 jobs, equivalent to five per cent of its total workforce, in an attempt to cut costs. In an email to staff, CEO Murray Auchincloss said he wanted to position the oil major to grow as “a simpler, more focused, higher-value company”.

It’s understood the cuts will apply to office workers rather than operations, and that they represent the first step towards a goal of reducing costs by £1.6 billion by the end of 2026.

Auchincloss has come under pressure as BP’s share price significantly underperformed over the past year compared with rivals Shell, Exxon and Chevron.

He has insisted the company will stick to the plan, laid out by his predecessor Bernard Looney, to become an “integrated energy company”.

That has led to more spending on low-carbon tech – and more debt. It’s a strategy that could pay off in the long run. The question is how much pain BP can take before that.