BP Cuts 8000 Jobs and Scales Back Renewables to Focus on Oil & Gas

BP is cutting 8,000 jobs, including 5,000 permanent employees and 3,000 contractors, as part of a cost-reduction plan to save $2 billion by 2026, with $500 million in savings expected this year. The decision follows a $30 billion revenue decline in 2023, which led to a 17% drop in BP’s stock value.

CEO Murray Auchincloss is shifting the company’s focus back to oil and gas, scrapping previous plans to expand renewable energy capacity. Activist investor Elliott Investment Management, holding a 5% stake, has been pushing for tighter cost controls. To improve financial performance, BP will divest certain assets and cut investments in low-carbon initiatives. This move aligns with trends seen across the energy sector, where companies like Shell, Exxon, and Chevron are prioritizing fossil fuels over renewables. Industry experts cite geopolitical factors, high oil prices, and evolving investor expectations as reasons why oil giants are scaling back their green energy ambitions.

BP Cuts 8000 Jobs and Scales Back Renewables to Focus on Oil & Gas

BP, one of the largest global energy companies, is reducing its workforce by nearly 8,000 employees, including 5,000 permanent staff and 3,000 contractors. The move is part of a broader cost-cutting initiative aimed at saving $2 billion by 2026, with $500 million in savings expected this year. Despite hiring over 20,000 employees between 2022 and 2023, BP experienced a revenue decline of over $30 billion in 2023, leading to a 17% drop in its stock value.

CEO Murray Auchincloss is steering the company away from its previous renewable energy commitments, reversing plans to expand renewable generation capacity to 50 gigawatts by 2030. Instead, BP is focusing on traditional oil and gas operations, aligning with industry trends where returns are more predictable. This shift follows pressure from activist investor Elliott Investment Management, which holds a 5% stake in the company and has been pushing for tighter cost controls and a stronger focus on profitability.

Elliott has a history of influencing major corporations by advocating for aggressive restructuring, divestments, and strategic realignments to maximize shareholder returns. Analysts believe the firm played a key role in BP’s decision to scale back its renewable energy ambitions, as investors increasingly favor stable and high-yielding fossil fuel projects over long-term, uncertain green initiatives. With oil prices fluctuating and economic conditions tightening, BP’s leadership is now prioritizing cost efficiency, asset optimization, and revenue growth in traditional energy markets.

Murray Auchincloss, who took over as BP’s CEO in 2023, has been steering the company through a period of strategic recalibration, prioritizing financial discipline and shareholder value. His leadership comes at a critical time when the energy sector faces mounting pressure from both economic and geopolitical forces. BP, once seen as a leader in transitioning toward renewable energy, is now reversing course in favor of traditional oil and gas, aligning with broader industry trends. The move follows increased volatility in global markets, where fluctuating oil prices and shifting investor sentiment have led major corporations to reevaluate their long-term strategies.

Other oil and gas giants, including Shell, Exxon, and Chevron, have also scaled back low-carbon investments and workforce numbers, reinforcing their commitment to fossil fuels. Shell, under CEO Wael Sawan, has reduced oil and gas exploration but still remains heavily invested in hydrocarbons. Chevron and Exxon, meanwhile, continue to expand their fossil fuel operations, leveraging geopolitical instability to strengthen their market positions. With growing energy demand in developing nations and slower-than-expected adoption of renewables, these companies see oil and gas as the more stable revenue source. As a result, BP’s pivot reflects a broader industry sentiment that fossil fuels remain indispensable despite the push for cleaner alternatives.