BP to Cut 3 Percent of Upstream Jobs by Year-End

May 22, 2018

(Reuters) – British oil giant BP Plc said it plans to cut 3 percent of jobs in exploration and production, as part of a restructuring of its global upstream business to make the division more efficient and competitive.

A BP spokesman said the cuts of around 540 jobs from the company’s 18,000-strong total upstream workforce will be carried out by the end of the year.

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The move is part of an ongoing process to simplify the company’s structure and increase efficiency, following the $50 billion worth of divestments over recent years, BP said in a statement. It did not comment on any possible cost savings associated with the redundancies.

BP held out the prospect of a first dividend increase since 2014, after first-quarter profits beat forecasts earlier this month, thanks to rising oil and gas prices and production.

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The 110-year old company is undergoing its fastest growth in recent history with new oil and gas fields from Egypt and Oman to the U.S. Gulf of Mexico, riding a tide of higher oil prices following the 2014 downturn.

BP remains committed to developing its upstream opportunities and delivering its existing five-year growth strategy, the company said in an emailed response on Tuesday.

Shares of the company were down 1 percent at 1410 GMT.

Reporting By Justin George Varghese in Bengaluru and Ron Bousso in London; Editing by Arun Koyyur