One of the world’s largest oil companies is set to lay off thousands of employees in a cost-cutting maneuver.
What’s happening?
In January, BP announced it would eliminate 4,700 jobs and 3,000 contractor positions, The Guardian reported. Executives hope the moves, part of a plan to cut $2 billion in costs by 2026, will please shareholders after the company’s poor performance compared to other oil conglomerates.
The cuts represent more than 5% of BP’s global workforce.
“We have got more we need to do through this year, next year and beyond, but we are making strong progress as we position BP to grow as a simpler, more focused, higher-value company,” CEO Murray Auchincloss wrote to staffers.
BP is the sixth-largest oil company in the world by revenue, but its stock price fell roughly 17% during 2024. The stock of No. 3 ExxonMobil, meanwhile, climbed nearly 5%.
Why are these job cuts concerning?
Even more alarming than the job cuts is the reason behind them. According to The Guardian, investors weren’t pleased with previous BP CEO Bernard Looney’s plans to reduce oil and gas production and put more money toward green energy. The plan led to his ouster.
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Auchincloss was installed as interim CEO in late 2023 and named the permanent CEO in January 2024. He quickly changed course and has focused on rapidly increasing oil production.
If his method proves successful with investors, it could make other companies reluctant to decrease dirty fuel production, the pollution from which is the driving cause of the changing climate. It could also lead to more greenwashing — the act of publicly touting environmentally friendly goals and projects while continuing to do massive harm to the planet — among Big Oil businesses.
A U.S. House Oversight Committee investigation into oil companies found such greenwashing is already taking place at a considerable level.
What can I do?
Reducing oil consumption can have a major impact on your carbon footprint, and transportation is just one area where that is possible.
Switching to an electric vehicle is one obvious option, but for shorter trips, a car may not even be necessary. One study found that increased use of bicycles, electric bikes, mopeds, scooters, and motorcycles has decreased the global demand for oil by 1%.
Consumers can also remain aware of companies that frequently use greenwashing tactics and opt to give their dollars to those that are actually eco-friendly.
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