BP announces plans to cut 350 jobs

Source: Stock Market Digital

Date :25/10/2007 10:02:34

In the wake of poor financial results, BP has announced that it will shed 350 jobs, 16 percent of its historic North Sea operations.

The jobs under threat are at the company’s Aberdeen base following a fall in production levels and rising costs.

Streamlining

“The changes are intended to simplify the organisation and improve the efficiency of work processes in response to the challenges of the increasingly mature North Sea,” said the company in statement released today.

“Declining production and rapidly rising costs have created business conditions which are not sustainable in the long term.”

“The new structure will mean fewer organisational units and reduced management layers. This will allow consolidation of onshore non-technical support activities, leading to economies of scale and reduced complexity,” the company said.

Staff cuts

“Regrettably, the company anticipates that the changes will result in the loss of some BP staff and contractor positions which support its operations in the UK. BP estimates that somewhere in the region of 350 positions could be affected, from a total onshore staff and contractor workforce of 2,100.”

The company is expected to announce soon that it will pay a $50 million fine over the 2005 explosion that killed 15 workers. Chief executive Lord Browne of Madingley, who was criticised over the accident, stepped down in May.

October 25, 2007

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