British Petroleum cuts 6,200 jobs as AI drives slick $5B cost reduction plan

BP announced it will eliminate an additional 1,500 jobs and 1,200 contractor roles by the end of 2025, bringing total expected job losses to 6,200—approximately 15% of its office-based workforce. The expanded cuts, up from 4,700 announced earlier this year, are part of the oil giant’s intensified cost-saving drive that increasingly relies on artificial intelligence to improve operational efficiency and reduce expenses.

The big picture: BP is accelerating its workforce reduction amid mounting shareholder pressure and weaker oil prices, with CEO Murray Auchincloss emphasizing that AI technology is playing a central role in the company’s overhaul strategy.

Key details: The job cuts represent a significant escalation from BP’s initial plans, affecting both UK and international operations.

• BP has already eliminated 3,200 contractor roles since January, with another 1,200 set to be removed by year’s end.
• The company stated it would “continue to rigorously review the remaining contractor activity across our businesses and functions.”
• BP employed approximately 14,000 UK workers at the start of 2025, though specific country breakdowns for the cuts weren’t provided.

Financial pressure driving changes: BP faces intensifying demands from investors to boost profitability and streamline operations.

• Activist investor Elliott Management, an investment firm that pushes companies to make strategic changes, recently acquired a 5% stake in the company.
• Half-year profits tumbled 32% to $3.73 billion due to weaker oil prices, though Q2 results of $2.35 billion beat analyst expectations.
• The company is working toward a $5 billion cost reduction target by 2027 and plans to offload $20 billion in assets.

AI’s expanding role: Chief Executive Murray Auchincloss highlighted artificial intelligence as a key component of BP’s transformation strategy.

• “Technology is helping improve capital productivity and drive cost reductions across the portfolio,” Auchincloss told analysts and investors.
• The AI implementation is part of BP’s broader efficiency drive that has already stripped $900 million in costs during the first half of 2025.

What they’re saying: BP leadership emphasized the company’s commitment to delivering better shareholder returns.

• “BP can and will do better for its investors,” Auchincloss stated.
• “We are two quarters into a 12-quarter plan and are laser-focused on delivery of our four key targets—and while we should be encouraged by our early progress, we know there’s much more to do.”

Looking ahead: BP plans further strategic changes under incoming chairman Albert Manifold, who joins September 1st.

• Auchincloss and Manifold have agreed to conduct a “thorough review” of BP’s business portfolio to maximize shareholder value.
• The company announced a $750 million share buyback program and increased its quarterly dividend by 4%.
• Additional job cuts remain possible as executives continue their comprehensive efficiency review.