BP Unveils Ambitious Cost-Cutting Plan Amid Fading Profits
Oil giant BP is set to ramp up its efforts to sell off non-core assets and slash costs in an attempt to stem falling profits. The company reported a modest underlying profit of $2.2 billion in its latest quarter, down from $2.4 billion the previous quarter, but still beating analyst expectations.
Chief Executive Murray Auchincloss is under pressure from shareholders to reverse years of underperformance by shifting focus towards oil and gas investments. In response, BP plans to accelerate its portfolio review, driving simplification and targeting further cost savings and efficiency improvements.
Auchincloss has vowed to divest $20 billion worth of assets by the end of 2027, with a target of selling off $5 billion's worth by year-end. The company has already agreed to sell several high-profile assets, including its US onshore wind business and Dutch retail fuel sites.
However, BP's plan to sell its multibillion-dollar Castrol lubricants unit remains shrouded in uncertainty, as the company keeps mum on the sale of this critical asset. The move is part of a broader effort by BP to cut costs, having already initiated a significant cost-cutting scheme earlier this year.
The initiative aims to slash thousands of jobs and contractor positions across the globe, with 6,200 office-based roles expected to go in total. Artificial intelligence will play a key role in driving these cuts, as BP seeks to reduce its workforce by approximately 15%.
Activist hedge fund Elliott Management has been pushing BP to accelerate cost-cutting efforts, having built up a stake in the company. The move comes as investors and shareholders grow increasingly impatient with BP's underperformance.
As the energy sector continues to grapple with declining profits, BP's ambitious plan to cut costs and sell assets offers a glimmer of hope for the beleaguered oil giant. However, the uncertainty surrounding the sale of its Castrol unit and the pace of job cuts remain major concerns.
Oil giant BP is set to ramp up its efforts to sell off non-core assets and slash costs in an attempt to stem falling profits. The company reported a modest underlying profit of $2.2 billion in its latest quarter, down from $2.4 billion the previous quarter, but still beating analyst expectations.
Chief Executive Murray Auchincloss is under pressure from shareholders to reverse years of underperformance by shifting focus towards oil and gas investments. In response, BP plans to accelerate its portfolio review, driving simplification and targeting further cost savings and efficiency improvements.
Auchincloss has vowed to divest $20 billion worth of assets by the end of 2027, with a target of selling off $5 billion's worth by year-end. The company has already agreed to sell several high-profile assets, including its US onshore wind business and Dutch retail fuel sites.
However, BP's plan to sell its multibillion-dollar Castrol lubricants unit remains shrouded in uncertainty, as the company keeps mum on the sale of this critical asset. The move is part of a broader effort by BP to cut costs, having already initiated a significant cost-cutting scheme earlier this year.
The initiative aims to slash thousands of jobs and contractor positions across the globe, with 6,200 office-based roles expected to go in total. Artificial intelligence will play a key role in driving these cuts, as BP seeks to reduce its workforce by approximately 15%.
Activist hedge fund Elliott Management has been pushing BP to accelerate cost-cutting efforts, having built up a stake in the company. The move comes as investors and shareholders grow increasingly impatient with BP's underperformance.
As the energy sector continues to grapple with declining profits, BP's ambitious plan to cut costs and sell assets offers a glimmer of hope for the beleaguered oil giant. However, the uncertainty surrounding the sale of its Castrol unit and the pace of job cuts remain major concerns.
i mean dey need 2 get real, de industry's changing so fast. AI is already toting thousands of jobs worldwide 
. they're basically sayin' "hey, we'll use tech 2 cut costs" but nobody knows if dat's even possible 
. castrol unit? wut r dey hiding from us? 
need more info on dat one 
... they're trying to cut costs by like, a lot 
, which means thousands of people might lose their jobs 
. i feel so bad for the ppl who have been with the company for ages and are worried about what's gonna happen next 
. it's also kinda scary when companies use ai to decide who gets let go... like, doesn't that make u wonder if u're being judged too? 
anyway, hopefully bp can get its act together and find a way to keep everyone employed 
.
. They need to focus on innovation and sustainability more than ever, not just cost-cutting 
. It'll be interesting to see how this all plays out... 
they gotta sell those assets ASAP though 
can't have any more uncertainty around that castrol unit 
hope they don't cut too many jobs tho 
AI might be the way forward but idk if it's enough 
fingers crossed BP gets back to profitability soon 
so they r sellin off assets n cuttin costs they wanna make up 4 those losin profits 
.
like, what's goin on here? first they're talkin about sellin off assets, then they're sayin they gotta cut costs... it sounds like a big ol' PR stunt to me 
and what's with the castrol unit? is that just some kinda decoy to distract us from the real issue? 
i mean, 15% workforce reduction? that's some scary stuff 
artificial intelligence? it sounds like they're tryin to replace humans with robots... like, what's next? 
Meanwhile, the uncertainty around the Castrol unit sale is just, like, soooo exciting 
. Can't wait to see which assets they decide to sell off next!