BP’s decision to cut about 4,700 staff as part of a drive to reduce costs has been described as a “hammer blow” to the North East of Scotland.
The job losses, which were announced in an internal memo to staff, will also include a further 3,000 contractor positions. BP has a global workforce of about 90,000, including 14,000 in the UK.
Around 6,000 of those are based in petrol and service stations and will not be affected by the cuts. However, many of the oil and gas industry jobs are based in and around Aberdeen including at BP’s sprawling North Sea HQ in Dyce.
Chief executive Murray Auchincloss said last year that he would cut the FTSE 100 energy company’s costs by at least $2 billion by the end of 2026 in an effort to boost returns as its share price lags competitors.
READ MORE: Donald Trump intervenes in North Sea row as he demands MORE oil and gas exploration
READ MORE: ‘Out-of-touch’ SNP admit nuclear power IS beneficial to Scotland but remain opposed to it
“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,” Auchincloss said in the memo, seen by The Times.
In the email Auchincloss said the move was part of a “multi-year programme to simplify and focus BP”. He added: “We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities.
BP chief executive Murray Auchincloss
(Image: BP/PA Wire)
“I understand and recognise the uncertainty this brings for everyone whose job may be at risk and also the effect it can have on colleagues and teams. We have a range of support available and please continue to show care for each other, be considerate, and keep putting safety first, especially during times of change.”
Scottish Conservative shadow secretary for energy and net zero, Douglas Lumsden MSP, said it was another example of political decisions leading to job losses in the North Sea.
He said: “This devastating announcement from BP is a hammer blow to the North East and illustrates the economic damage which is being caused by both Labour and the SNP’s opposition to oil and gas. The consequences of Labour’s shortsighted sanctions of increasing the windfall tax, ending the investment allowance and opposing all new oil and gas licences are now being felt, resulting in the loss of thousands of jobs.
He added: “BP’s decision is disastrous for Scotland and must act as a catalyst for both Labour and the SNP to show some common sense for a change by supporting the sector, instead of turning their backs on it.”
The announcement follows a group-wide review of all of BP’s divisions and the cuts are expected to be completed this year, although it is not known which divisions will be impacted.
Never miss the latest top headlines from the Scottish Daily Express. Sign up to our daily newsletter here.