BP Has Announced 4,000 Job Cuts To Cover Damages From Low Product Prices

After looking at all of its options, BP plans on removing 4,000 employees in order to cover to costs and loss it is facing from the low prices of oil and gas

The giant oil and gas company has been facing damages due to the downfall of the oil industry, BP Plc. was reported to sell many of its refineries to cover the damages it has gone through, but apparently that was not enough. The London based oil business has plans of removing 4,000 of its workers internationally to save costs.

The job cuts by BP Plc. will be as huge as 4000, out of which 600 are going to be from the company’s North Sea operation. A spokesman for the business informed that such measure are being taken to make the business model and strategy simple and save costs and expenditures within the premises of safety.

The Oil and Gas Company has already warned the media and its employees that many job cuts can be expected in 2016. The oil and natural gas prices have gone down by 70% since 2014, this has damaged many companies in the industry not just BP Plc.  Even though job cuts will take place, the business has assured that in there will not be removal of job in the departments of exploration and drilling.

The London oil business currently provides 80,000 jobs globally, out of which 4,000 of these are in United Kingdom. There are plans of reducing 600 jobs in the North Sea project; regardless the business is still investing $4 billion this year in the project. It is already very well aware that the project will not be an easy one especially because of the difficult market conditions, the company will have to stay extra conscious in how it operates and run the project; every decision will play a huge impact on the business.

Such bad market conditions have led to the company making the unfortunate decision of the removal of job, contractors job cuts will be conducted by the end of next year, however the most of the of job cuts will be taking place this year. This how many organization will have to react due to downfall of the industry globally, the number of job cuts made by businesses has gone up to 250,000 and is increasing every day now.  The CEO of BP said that he wanted pay dividends without taking any loans, this idea is similar to another company, Total SA.

BP stock closed at $28.65, after going red by 0.06% on January 12.