Supply Chain

BP to Lay Off About 4,000 Workers

The industry may have more capacity to cut as some analysts are projecting depressed crude oil prices through 2016.
Katie Kuehner-HebertJanuary 12, 2016
BP to Lay Off About 4,000 Workers

Plummeting oil prices have forced BP to lay off about 4,000 workers.

A BP spokesman told Bloomberg that the cuts will affect workers in places including Angola, Azerbaijan, and the United States. There will be 600 layoffs within BP’s North Sea operations, which currently has about 3,000 employees. The company has 24,000 exploration-and-production employees worldwide.

BP joins many of its rivals who have also announced job cuts in response to oil prices that have fallen by more than two-thirds since mid 2014, according to Bloomberg.

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However, BP had already been planning major layoffs due to costs related to its 2010 Gulf of Mexico disaster that killed 11 workers and sullied the U.S. coast. Chief Executive Bob Dudley announced a $1 billion restructuring plan to be implemented last year that would save money partially through staffing cuts.

Santander analyst Jason Kenney told Bloomberg that he expects to see even more layoffs in coming months as companies struggle to cope with falling revenue.

“We need to see significant disinvestment going forward,” Kenney said.

Crude oil prices, meanwhile dropped more than 2% early Tuesday, and were near $30 a barrel.

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