The economic effects related to the pandemic Covid-19 is-more feel. The oil giant british company BP announced, on Monday June 8, 2020, the elimination of 10,000 jobs worldwide, or 15 percent of its workforce, in order to gain efficiency and adapt to the oil market hit by the health crisis. The majority of these job cuts will take place by the end of the year and will mainly involve employees in administrative functions, says the group in a press release. The hierarchy will not be spared, since BP will reduce by one third the number of executive officers, to the number of 400 for now. These announcements were made by the director-general, Bernard Looney in an online conference for staff from BP.
"These are difficult decisions to make," said the boss in an e-mail to employees. "But we need to do what is good for BP," and " this will help us to be more efficient ", he added. The strategic plan announced in February, were already planning to form a group least great to be able to ensure a future less dependent on fossil fuels. But the health crisis has changed everything and has pushed BP to take radical measures.
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Falling oil prices
oil prices have plunged since march, below the threshold of profitability of BP in the face of a demand depressed by the shutdown of activity during the confinement. Bernard Looney explained that his group spends a lot more money than it brings in its funds, of the order of several millions of dollars per day.
BP had already announced at the beginning of April, a drastic decrease of 25 % of its investment expenditures and a savings program of $ 2.5 billion in 2021, which is expected to be further strengthened. Because of the fall of course, BP had suffered a huge loss of $ 4.4 billion in the first quarter. In addition, in contrast to its competitor Royal Dutch Shell, the group decided to maintain its dividend, is depriving them of this fact of financial margin.Date Of Update: 08 June 2020, 09:33