UK giant BP is set to layoff some 500 workers in Houston come June, as part of the company’s plan to cut about 4000 from its global upstream sector by 2017.
Image from BP.
All impacted jobs will come from BP's Westlake campus at Westlake 1 and Westlake 4 office towers and its Helios Plaza building in the Houston area.
"As previously announced, BP expects to reduce the number of staff and contractor roles in the global upstream segment by around 4000 during 2016. The notifications that we are making in the Houston area are part of that plan,” Jason Ryan, BP director of US media affairs told OE. “Headcount reductions are always difficult, and BP remains committed to treating all employees with respect and to maintaining safe and reliable operations in the communities where we live and work. But this is what is required to adapt to the protracted low oil price environment, and BP is taking the steps necessary to reduce costs and ensure we are structured to compete as efficiently as possible."
Affected employees will receive written notice of termination at least 60 days in advance of their separation date, BP said in a letter to the Texas Workforce Commission.
In January at a town hall meeting in Aberdeen, BP announced its workforce reduction plans that will take place within the next two years to simplify its business, improve efficiency, and reduce costs.
In the company’s Q4 and 2015 financial results, BP said that it has taken some US$1.5 billion in restructuring charges over the past five quarters. By year-end 2016, the total BP expects the total to reach $2.5 billion.
BP also noted that its focus on cost discipline and increasing efficiency continues, as its 2015 annual controllable cash costs came in at $3.4 billion lower than 2014, and are on track to be close to $7 billion lower in 2017.