BP is set to intensify its cost-cutting efforts as part of a broader strategy to revive underperforming operations and meet investor demands for increased profitability.
The energy giant reported a modest decline in underlying profits during its latest quarter, coming in at $2.2 billion against expectations of $1.98 billion. However, the company's chief executive, Murray Auchincloss, emphasized that BP is committed to accelerating its plans to streamline operations and reduce costs.
Auchincloss confirmed that the company aims to sell off non-core assets more quickly than initially anticipated, with a target of disposing of $5 billion worth of assets by the end of the year. This strategy is part of a broader effort to boost profitability and reverse years of underperformance in the renewable energy sector.
As part of this plan, BP has already agreed to sell several high-profile assets, including its US onshore wind business and stakes in US shale assets for $1.5 billion. The company's new chair, Albert Manifold, has been pressing staff to accelerate a cost-cutting program that includes the sale of non-core businesses.
However, one major asset – BP's multibillion-dollar Castrol lubricants unit – remains up for sale, despite ongoing pressure from activist hedge fund Elliott Management. This deal is seen as a crucial component of BP's efforts to raise at least $20 billion by 2027.
The company's cost-cutting program has already led to the announcement of significant job losses, with an initial target of 4,700 office-based positions due for elimination. However, this figure may be revised upward, and BP has also stated that it will utilize artificial intelligence to drive further efficiency gains.
As investor pressure mounts on BP to deliver better returns, Auchincloss's renewed focus on cost-cutting and asset sales is likely to prove pivotal in the company's bid to revitalize its fortunes.
The energy giant reported a modest decline in underlying profits during its latest quarter, coming in at $2.2 billion against expectations of $1.98 billion. However, the company's chief executive, Murray Auchincloss, emphasized that BP is committed to accelerating its plans to streamline operations and reduce costs.
Auchincloss confirmed that the company aims to sell off non-core assets more quickly than initially anticipated, with a target of disposing of $5 billion worth of assets by the end of the year. This strategy is part of a broader effort to boost profitability and reverse years of underperformance in the renewable energy sector.
As part of this plan, BP has already agreed to sell several high-profile assets, including its US onshore wind business and stakes in US shale assets for $1.5 billion. The company's new chair, Albert Manifold, has been pressing staff to accelerate a cost-cutting program that includes the sale of non-core businesses.
However, one major asset – BP's multibillion-dollar Castrol lubricants unit – remains up for sale, despite ongoing pressure from activist hedge fund Elliott Management. This deal is seen as a crucial component of BP's efforts to raise at least $20 billion by 2027.
The company's cost-cutting program has already led to the announcement of significant job losses, with an initial target of 4,700 office-based positions due for elimination. However, this figure may be revised upward, and BP has also stated that it will utilize artificial intelligence to drive further efficiency gains.
As investor pressure mounts on BP to deliver better returns, Auchincloss's renewed focus on cost-cutting and asset sales is likely to prove pivotal in the company's bid to revitalize its fortunes.
. And what about the impact on all those families? BP's got some explaining to do, imo 
. They're trying to revive underperforming ops and meet investor demands for profitability, but don't they have a responsibility to their employees too? 
. They're just trying to streamline operations and make some smart investments. Selling off non-core assets might be a bit of a bummer for the people who work there, but it'll definitely help them focus on their strengths. And let's be real, $5 billion is a pretty sweet chunk of change 
. It's all about adaptability and making tough decisions – I'm sure they'll come out stronger on the other side 
!
it's always sad when companies have to cut jobs, but I guess it's part of being a business, right? 
and who knows, maybe selling off non-core assets will be just what they need to boost profits! 
hope it all works out for them 
. And AI is supposed to help with efficiency gains, but isn't that just another way of saying "we don't need you anymore" 
. What if they just lay off people in other departments instead? That's what concerns me...
. Just like BP needs to cut costs and sell off non-core assets, we all need to make some adjustments in our own lives. Maybe it's time for us to take a closer look at where our money is going and see where we can make some "streamlined" decisions 
The job losses are a major concern - 4,700 positions is a lot of people losing their jobs. I hope the company can find ways to minimize the impact on staff.