British energy giant BP on Monday announced plans to axe "close to 10,000" jobs, or almost 15 per cent of its global workforce, after the coronavirus pandemic slashed demand for oil.
"We will now begin a process that will see close to 10,000 people leaving BP -- most by the end of this year," said CEO Bernard Looney.
"We are working to bring down our capital expenditure by 25% this year – which is a reduction of around $3 billion. We are also driving down operating costs by $2.5 billion in 2021 – and we will likely have to go even further." said Looney.
He went on to say that oil prices had plunged "well below the level" the group needed "to turn a profit".
After companies worldwide closed their doors and airlines grounded planes towards the end of the first quarter, oil dropped off a cliff, causing prices to briefly turn negative.
Prices have however rebounded sharply in recent weeks as governments ease lockdowns and businesses slowly reopen.
"It was always part of the plan to make BP a leaner, faster-moving and lower carbon company," said the email from Looney, who recently took over as the group's CEO.
"We are spending much, much more than we make -- I am talking millions of dollars, every day. And as a result, our net debt rose by $6 billion in the first quarter," he added.
The majority of job cuts will come from office staff.
"We are protecting the frontline of the company and, as always, prioritising safe and reliable operations," Looney said.
BP will scrap pay rises for its senior staff this year and likely do away with cash bonuses, he added,
The company slumped into a $4.4-billion net loss in the first quarter, during which time Bob Dudley stepped down as group CEO after a decade at the helm.
Soon after starting, Irish national Looney set BP a target to achieve "net zero" carbon emissions by 2050.
