Oil and gas giant BP
announced it will cut
10,000 jobs from its
global workforce
(about 15%), citing
the negative impact
of the coronavirus
pandemic on the
energy industry.
Note: The following two
paragraphs sound like
CEO baloney to me:
CEO Bernard Looney said
the decision to cut 15%
of its workforce is also
motivated by BP’s plan
to transition to renewable
energy. A BP spokesman
further stated that the
coronavirus has only
accelerated this plan.
Reuters reported that
BP aims to become
a net-zero company
by 2050, which would
require eliminating
415 million tons of
CO2 emissions from
use of BP products.
BP CEO Bernard Looney,
during an event in London
on February 12, 2020, said:
"BP's new ambition to be
a net zero company by 2050
or sooner covers the
greenhouse gas emissions
from its operations worldwide
... and the carbon in the
oil and gas that it produces."
Because of the combination
of low oil prices, economic
lockdowns, and the pandemic,
oil companies have reported
huge losses this year.
Energy analysts worry
that a continued economic
downturn could cripple
the energy markets.
In an email sent to BP staff,
CEO Bernard Looney said:
-- Net debt rose $6 billion
in the first quarter of 2020,
and
-- Layoffs would mainly affect
senior level employees in
office-based jobs.
Looney pledged
to reduce the
capital expenditure s
by 25%, and trim the
roughly $22 billion
spent annually on
operational costs.
Other European-based
energy firms have also
announced plans
to diversify their economic
activities, and gradually
shift away from oil and gas.
That suggests more layoffs
and corporate restructurings
are likely in the future.