Bad weather for the oil industry. At an online conference released on Monday, the British oil giant BP discussed several aspects of its strategy in the coming weeks, and announced several thousand layoffs around the world. These should allow it to be more agile and prepare for a strengthening of renewable energies.
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The company's CEO, Bernard Looney, explained that he wanted to respond to the concerns of the employees by sharing the management plans with them. The businessman first returned to the balance sheet of the epidemic for his group. " Beyond the obvious human tragedy, there have been widespread economic spinoffs, as well as consequences for our industry and our business, " he said. The drop in oil prices, in particular, forced the company to " spend much more than what it earns ", " millions of dollars every day ", resulting in a sharp increase in the group's net debt, around six billion dollars in a quarter.
" We have to spend less money, " he said, adding that the company's operating costs will be cut " by $ 2.5 billion in 2021 ". Several measures should allow BP to save money. First, the moratorium on layoffs, introduced in March, is now ending: " We will now begin a process that will see nearly 10,000 people leave BP - most by the end of this year, " said the CEO. These deletions should mainly concern office jobs.
Then the promotions, frozen since March, will be able to resume in early July but " in a measured way ". Likewise, the salary increases for 2020, which were to take effect in April, will finally be active from " October 1 ", but only for certain employees. " There will be no salary increase for senior managers or group leaders until March 31, 2021 ". Bonuses will also be limited, those provided " as part of the annual bonus plan are very unlikely this year ". The boss of the group advised his employees not to " include " them in their " personal plans " for 2020.
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" I am very sorry that this decision hurts many people I know who love this business as much as I do, " added Bernard Looney. The BP group will support those affected by mobilizing in particular " professional coaching " as well as by referring them to " training agencies and government programs ". These job cuts are " the right solution " for BP, he justified, adding that they "will help strengthen [the] finances " of the group.
