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BP to cut 4,700 staff this year

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Another 3,000 contractor positions to be cut

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CEO aims to cuts at least $2 bln in costs by 2026

(Adds detail, background throughout)

By Ron Bousso

LONDON, Jan 16 (Reuters) - BP will cut over 5% of its

global workforce, it said on Thursday, as part of CEO Murray

Auchincloss' efforts to reduce costs and rebuild investor

confidence in the energy giant.

Around 4,700 employees and 3,000 contractor positions will

be cut this year, BP told Reuters. The cuts were

announced in an internal memo seen by Reuters earlier on

Thursday.

BP shares were up 1.8% at 1110 GMT.

Auchincloss last year said it would cut the British

company's costs by at least $2 billion by the end of 2026 to

boost returns and address investor concerns over its energy

transition strategy.

He was also seeking to restore confidence following the

abrupt resignation of his predecessor Bernard Looney in

September 2023 for failing to disclose relationships with

employees.

The job cuts follow reviews of all of BP's divisions. The

exact breakdown of the cuts was not disclosed. BP has a

workforce of around 90,000.

"We have got more we need to do through this year, next year

and beyond, but we are making strong progress as we position BP

to grow as a simpler, more focused, higher-value company,"

Auchincloss said in the memo.

Shares in the group have underperformed those of most of its

rivals over the last year, down by over 5%, similar to French

rival TotalEnergies and compared with a 5.5% gain for

Shell and Exxon Mobil's 14% gain.

Auchincloss, who took office a year ago, will lay out his

new strategy at an investor day on Feb. 26.

He has already taken major steps to reverse his

predecessor's strategy of shifting away from oil and gas.

As part of the new effort to reduce exposure to renewables,

BP and Japanese power generator JERA last month agreed to join

forces to form one of the world's largest offshore wind

operators.

Rival Shell has also made reductions to its workforce in

recent years as part of CEO Wael Sawan's cost-cutting drive.

Those included a 20% reduction in its oil and gas exploration

division and cuts in its low-carbon division.

BP will publish its fourth-quarter and full-year results on

Feb. 11.