Oil companies are hard pressed to find ways to cut costs now that oil prices have swept through the corona pandemic. BP experienced a significant earnings drop in the first quarter and announced $ 2.5 billion in cost savings.
The scrapping of many management positions at BP also coincides with a new organizational structure. It will remove the classic dichotomy between upstream, which means finding and pumping up oil, and downstream, which includes refining and selling oil products.
Instead, CEO Bernard Looney sets up eleven smaller departments. These are led by approximately 100 executives, said an internal memo by Looney. “We expect the updated BP to be smaller and more flexible. We have already removed a management layer at the top and second levels,” the statement said.
BP did not say anything about job cuts in April when the cost savings were announced in April. The company then reported that it would leave the workforce untouched for at least three months. In June, Looney would provide more information about jobs.
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