CEO Bernard Looney told employees Monday that the oil giant will reduce its global workforce by about 15% this year. Most cuts will affect office work.
Brent crude futures, the global benchmark for oil prices, hit their lowest level in decades in April, falling below ২০ 20 a barrel. Since then they have come back and traded above $ 42 per barrel in the last trade but it is still below where prices started years ago.
“Oil prices have fallen below the level of our profit margins,” Luni, who took over BP’s top responsibility earlier this year, said in an email to employees. “We’re spending a lot more than we do – I’m talking a few million dollars every day.”
BP also announced that senior leaders would not receive a pay hike by March 2021. The company added that any cash bonuses for 2020 were “highly likely”.
Despite a 6 6 billion increase in net debt in the first quarter, the company has so far resisted pressure to reduce payments to shareholders. The board said it would reconsider whether it could pay dividends on a quarterly basis.
– Chris Liacos contributed to the reporting.