BP Layoffs 2020: Why The Energy Producer Is Cutting 10,000 Global Jobs

Oil and gas producer BP (BP) reportedly announced on Monday that it was cutting its global workforce by 10,000 jobs as the energy sector took a hit during the coronavirus pandemic.

The news came in a call to workers by CEO Bernard Looney, who said the majority of the cuts would take place this year and affect office-based position at the company, including senior-level staff by about a third, USA Today reported. The company employs about 70,000 workers, while Reuters said a fifth of the job cuts will come from the U.K.

BP is looking to move towards renewable energy products, saying that it wants to eliminate or offset its carbon emissions by 2050. The company has cut spending in 2020 by 25% to $12 billion and is looking to find another $2.5 billion in cost-saving by the end of 2021, where Looney said even further cuts may be needed, Reuters said.

The company will also reportedly not give out raises to senior employees until March 2021 and said it is unlikely to dole out cash bonuses in 2020 as well.

“To me, the broader economic picture and our own financial position just reaffirm the need to reinvent BP,″ Looney said in an email to staff (via USA Today). “While the external environment is driving us to move faster – and perhaps go deeper at this stage than we originally intended – the direction of travel remains the same.″

The coronavirus pandemic has caused gas prices to slump as consumers stayed home, forgoing travel and business as shelter-in-place orders were enacted across the nation.

Shares of BP stock were up 1.62% as of 11:58 a.m. EDT on Monday.