BP plans to cut 14% of workforce

The oil major's headcount was set to fall by 10,000 from 70,000 at present, BP chief Bernard Looney told staff in an hour-long webcast.

As part of the plans, the number of group leaders at the firm, which now stood at roughly 400, would be pared by a third.

"These plans and actions have been accelerated and amplified by the need to respond to market conditions and reduce our costs," BP said in a statement.

The firm had already announced its intention to streamline the organisation in February, but in the wake of the Covid-19 pandemic later decided to hold off on any layoffs.

Furthermore, the company said that senior staff would not receive an annual pay rise in 2020.

The annual cash bonus which typically accrued to about half of staff was also "unlikely" in 2020.

Annual pay rises deferred from April for junior and mid-graded staff would however still go through, but from October.

Retail staff in the UK did get a 5% rise in April and were set to receive another 5% upgrade on average as the Real Living Wage kicked in.

"These are front-line staff and aren’t included in the process set out today," BP explained.

Included in BP's planning were various measures to support those leaving the firm including launching new careers, coaching for job seeking, building alumni networks and more.