Oil and gas giant BP announced Monday that it will cut 10,000 jobs from its global workforce, citing the negative impact of the coronavirus pandemic on the energy industry.
In an email sent to BP staff, CEO Bernard Looney said that the company’s net debt rose $6 billion in the first quarter of 2020, and that the layoffs would mainly affect senior level employees in office-based roles. Looney also pledged to bring down capital expenditure by 25% and trim the roughly $22 billion spent annually on operational costs, the Associated Press reported.
The energy industry has been hit hard by the coronavirus pandemic as demand for fuel and other resources dipped amid lockdowns and limits on business, travel and daily life. Since the beginning of the year, oil prices have dropped more than 90%partially because of the coronavirus, and the price of US crude oil even fell below $0in April.
Because of the combination of unprecedented low oil prices, economic lockdowns and the pandemic, oil companies have reported huge losses this year. Energy analysts also worry that an economic downturn could cripple energy markets in the long-term.