Oil major BP to cut thousands of jobs in cost-saving drive

British oil major BP on Thursday said it is planning to cut thousands of jobs as part of a major cost-reduction exercise.

“Today, we have today told staff across bp that the proposed changes that have been announced to date are expected to impact around 4700 bp roles – these account for much of the anticipated reduction this year,” BP said in a statement.

“We are also reducing our contractor numbers by 3000,” the company said.

The measures, which were designed to lower costs, come after BP CEO Murray Auchincloss said last year that the company intends to deliver at least $2 billion of cash savings by the end of 2026.

BP’s workforce currently stands at around 87,800.

Shares of the company traded 1.4% higher on Thursday morning.

BP has underperformed its European rivals of late as energy market participants continue to question the firm’s investment case.

In a trading update published Tuesday, BP said weaker refinery margins and turnaround activity will deliver a $100 million to $300 million blow to its fourth-quarter profit, while further declines are expected in oil production.

The energy firm is scheduled to report quarterly and full-year earnings on Feb. 11.

BP said in the same update that it had postponed an event for investors next month so that its chief executive can fully recuperate from a “planned medical procedure.” Auchincloss was said to be “recovering well” from the procedure, which had not been previously disclosed.

The capital markets event, which had previously been scheduled to take place in New York on Feb. 11, will now take place in London on Feb. 26.

— CNBC’s Ruxandra Iordache contributed to this report.