BP has cut 4,700 jobs in its cost-cutting drive

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BP is cutting 4,700 jobs, or more than 5 percent of its workforce, in an effort to save $2 billion in costs and revive its share price.

The energy company plans to cut the number of contractors it uses by 3,000 this year, including 2,600 layoffs, CEO Murray Auchincloss said in a memo to employees.

In an email on Thursday, Auchincloss said the group was making “solid progress” to become a “leaner, more focused, higher-value company” but warned that the cuts represented only this year’s target.

Last year, Auchincloss announced plans to cut $2bn BpCosts in 2026.

BP shares rose nearly 2 percent in morning trading, but fell 5 percent after Auchincloss became permanent chief 12 months ago. Share prices have lagged behind rivals including Shell, ExxonMobil and Chevron.

This is a developing story.