BP Slashes Workforce By 5% To Reach $2 Billion In Savings Goal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2025
0mins
Should l Buy BP?
Source: Benzinga
Workforce Reductions: BP Plc is cutting 4,700 jobs, which is 5% of its workforce, and eliminating over 3,000 contractor positions as part of a strategy to save $2 billion by 2026.
Production Adjustments: The company has suspended 30 projects since June 2024 to focus on more profitable initiatives, while also scaling back its oil and gas production reduction targets for 2030, leading to anticipated declines in fourth-quarter production.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 44.790
Low
6.38
Averages
84.26
High
503.69
Current: 44.790
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. Its segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. The gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and its solar, wind and hydrogen businesses. The oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. The customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle (EV) charging, as well as Castrol, aviation and business-to-business (B2B) and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. The other businesses and corporate also comprises the Company's shipping and treasury functions, and corporate activities worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Hiring Slowdown: The survey indicates that Eurozone companies marginally scaled back hiring in March, reflecting a downward adjustment in output expectations, which suggests that uncertainty in the economic outlook is impacting the labor market.
- Stagflation Alarm: Economists warn that the current economic conditions could lead to stagflation, presenting a dilemma for central banks, as traditional measures to combat high inflation, such as raising interest rates, may stifle economic growth and employment.
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- Oil Price Rebound: Following President Trump's remarks about a potential comprehensive deal with Iran, oil prices experienced volatility, with Brent crude futures rising approximately 3% to above $100, indicating market sensitivity to geopolitical risks.
- Weakening Gold Market: Gold prices continued to decline, with spot gold trading 0.4% lower at $4,386.69 per ounce, further sinking into bear market territory, reflecting investor risk aversion towards safe-haven assets.
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- Trump's Statement Impact: Trump's assertion of productive talks with Iran and his order to postpone military strikes initially led to a drop in oil prices, yet skepticism remains regarding the authenticity of these claims, influencing market sentiment.
- Ongoing Market Concerns: Despite a rally in equities due to Trump's comments, analysts highlight Iran's denial of negotiations with the U.S., maintaining market anxiety over potential disruptions in production and transportation in the Middle East.
- Strait of Hormuz Significance: The Strait of Hormuz handled about 20% of global seaborne oil supplies before the conflict escalated, with Iran halting flows, leading to heightened market concerns about transportation disruptions that could keep costs elevated.
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