In a webcast to employees on Monday, BP chief executive Bernard Looney announced that 10,000 jobs will be cut due to the effect of COVID-19 on oil prices.
“The oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make,” he said.
Looney said that BP’s senior roles would “bear the biggest impacts”, with a new company structure seeing the number of senior-level jobs halved and group leaders cut by a third. “The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations,” he continued.
This new round of layoffs, most of which will be resolved by the end of the year, marks the end of BP’s three-month redundancy freeze that has commenced since March.
In addition to reducing BP’s capital expenditure by $3 billion and operating expenditure by $2.5 billion in 2020, Looney also suggested that the company will soon be refocusing its efforts to transition away from fossil fuels, and that the COVID-19 pandemic may accelerate the process.
“To me, the broader economic picture and our own financial position just reaffirm the need to reinvent BP,” he said. “While the external environment is driving us to move faster — and perhaps go deeper at this stage than we originally intended — the direction of travel remains the same.”
Since his appointment to CEO in February, Looney has already pledged to transform BP into a carbon-neutral company by 2050.
New research from Haven Power, one of the UK’s largest business electricity suppliers, reveals two fifths of Financial Services firms think renewable energy is just a passing trend. A perception that is significantly higher than any other industry.
Despite scepticism, almost two thirds of businesses in the sector are keen to start selling energy back to the grid. The Financial Services industry is one of the greenest compared to others surveyed, with 41% stating they already had onsite battery storage facilities installed.
The survey of Utility Decision Makers in Financial Services showed the biggest barrier preventing them from implementing sustainable change was cost (44%), followed by uncertainty on both how to measure the impact and ROI (30%) and how to discuss with investors or senior management (26%).
Paul Sheffield, Chief Operating Officer at Haven Power, commented: “Despite a proportion of firms still seemingly sceptical about the future of renewables, it’s encouraging to see that many are implementing positive changes. Understanding of renewable energy and its benefits varies greatly from sector to sector. We believe that every industry needs to start making sustainable changes to help reduce carbon emissions and embrace cleaner energy.”
When asked to list whose responsibility it is to lower carbon emissions, energy suppliers were cited top (48%), ahead of the Government (47%) and manufacturers (44%). Additionally, almost half (46%) strongly agree it is the energy providers’ responsibility to educate decision makers on the different types of energy available.
Paul Sheffield continued: “It’s imperative that organisations of all sizes across different industries work together with their energy provider to ensure the future of British business is low carbon. By moving beyond viewing energy as a commodity, we can help to drive sustainability and profitability. Here at Haven Power we are keen to help businesses understand the wider benefits of renewables.”
Haven Power is one of the UK’s largest business electricity suppliers, founded over ten years ago, it aims to help businesses control spend, manage risk and boost sustainability by using renewable electricity, energy efficiency and bespoke energy solutions.
(Source: Haven Power)
