Bad time for the oil industry. During an online conference made public this Monday, the oil giant british company BP has returned on several aspects of its strategy for the coming weeks, and announced several thousand job cuts across the world. These last should allow him to be more agile and prepare for a strengthening of renewable energies.
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The company’s CEO, Bernard Looney, said wish to respond to the concerns of employees by sharing the management’s plans with them. The business man is first income on the balance sheet of the epidemic to his group. “Beyond the human tragedy, obvious, there has been economic spin-generalized, as well as the consequences for our industry and our business”, he noted. The falling price of oil, in particular, has forced the company to “spend a lot more than what [she] wins”, of “millions of dollars every day”, leading to a strong increase of the net debt of the group, of the order of six billion dollars in a quarter.
the 10,000 job cuts in the world
“We need to spend less money”, he said, adding that the operating costs of the company would be reduced by at least “$ 2.5 billion in 2021”. Several measures should allow BP to save money. First, the moratorium on the layoffs, which were introduced in march, is now the end : “we will now begin a process that will see nearly 10,000 people to leave the BP – the most by the end of this year,” announced the CEO. These deletions should mainly relate to office jobs. In total, they will account for about 14% of its 70.100 current employees. About one-fifth of these positions are located in the United Kingdom, quickly indicated a spokesperson of the group to the AFP. In addition, officers will also be affected, the highest levels having to bear “the greatest effect”.
“I’m really sorry that this decision would hurt a lot of people I know and who love this business as much as me,” said Bernard Looney. The BP group was going to accompany the people affected notably by mobilizing a “professional coaching” as well as directing them to the “training agencies and government programs.” These job cuts are “the right solution” for BP, is it justified, stating that they “will strengthen [the] finances of the group and to make it more agile in the years to come.
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