Oil giant BP to slash 700 jobs due to OVERSUPPLY of oil

BP IS set to cut 700 jobs as it simplifies its structure amid concerns of oil oversupply. The oil and gas firm plans to cut up to 8% of its 8,500 “non front-line” global workforce, according to an internal email seen by Reuters. These roles were historically part of the company’s production and operations business. Frontline roles include operators, technicians and maintenance roles. Sign up for the Money newsletter Thank you! BP said in the email it does not expect any material changes to its frontline teams. The email said: “If your role is affected, that could mean that it does not exist ​in the new organization, changes materially, or moves ​into a different part of the organization.” The company plans to continue to prioritise communication with affected staff and support its teams. Oil oversupply happens when the production of oil is higher than demand for it, leading to a surplus of unused barrels. As a result market prices fall and storage facilities remain full. BP has been focusing on efforts to simplify its operations in an attempt to reduce debt, boost profits and refocus on its oil and gas investments. Most read in Money It has also recently scaled back on its investment in renewable energy. Upstream Online reported the news earlier ​on Thursday. A BP spokesperson said: “We are building a simpler, stronger, more valuable BP. “As part of this process, we are proposing changes that would result in a reduction in roles, intended to reduce complexity, improve accountability and support long-term performance in a changing market environment.” Comment now