BP, the oil and gas company that is based in London, has announced the plans of the company to cut three percent of jobs within production and exploration in an attempt to make the company more competitive and efficient.
According to a spokesperson from BP, the company will cut approximately 540 jobs of the total upstream workforce that has a total of 18,000 by the end of this year.
The reason for the said cutbacks is that the company is trying to restructure itself to increase its efficiency by cutting back the employees who are working within the gas and crude oil section of the company, after the $50bn (£37bn) divestment during the past few years.
The first quarter results of the company were stronger than expected as the oil prices have been much higher than usual, reaching $80 per barrel earlier during the day.
Also, the company is now undergoing its fastest growth in a long time as the firm is exploring its new gas and oil fields in Oman and Egypt as well as in the Gulf of Mexico and reaping benefits from the increased prices of oil.
Earlier today, the company also announced that it would invest $20m in StoreDot, a manufacturer of batteries, to develop an ultra-fast charging battery that are aimed for electric vehicles. The said investment is an attempt to further the presence of BP in the electric vehicle industry in the coming years.
The oil giant said on Tuesday that BP Ventures, its venture capital arm, was investing in the Tel Aviv-based company as it seeks to reduce greenhouse gas emissions in its operations.
In a statement, the chief executive of the downstream business of BP, Tufan Erginbilgic, stated: “Ultra-fast charging is at the heart of BP’s electrification strategy.”
“StoreDot’s technology shows real potential for car batteries that can charge at the same time it takes to fill a gas tank.”
The share price of BP was down by almost one percent when the market closed today.