The company advised that the job reductions would affect the majority of people who are office-based, with most cuts occurring by the end of the year.
Looney further outlined that the COVID-19 pandemic took hold with consequences for both the industry and the company.
In addition to the the 10,000 jobs being lost, BP advised that it is working to bring its capital expenditure down by 25 per cent this year, as well aiming to bring operating costs down by $2.5 billion in 2021.
“The oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make – I am talking millions of dollars, every day. And as a result, our net debt rose by $6 billion in the first quarter,” Looney stated in the letter.
The company has also stated that it has made three promises including: its core value of safety will not be compromised by the its decisions.
It will work hard to make sure the process is fair and objective; and the most senior levels of BP will bear the biggest impacts, with it introducing a new tier two structure which will halve the number of most senior level jobs.
However, BP has announced that the promotion freeze it introduced from April will now be lifted from July 1.
Looney reported BP would help those leaving the company to launch a new career through information, webinars and connecting them to training agencies and government programs; sharpen job-seeking skills with professional coaching; and provide people with a laptop and support them by building its alumni network.
“These are tough decisions to make. But the impact – particularly on those leaving us – is much, much tougher. I understand this and I am sorry. But we must do the right thing for bp and this is that right thing,” Looney said.
“It will help strengthen our finances. And it will help create a leaner, faster-moving and more competitive company for the majority who are staying.”