Oil giant British Petroleum to lay off 10,000 employees globally
Amid the coronavirus pandemic and its severe impact on the oil market, British Petroleum has decided to lay off 10,000 employees from its workforce globally by the end of the year.
The total people to be laid off represent 15 per cent of the 70,000 strong global workforce of the oil giant.
BP's CEO Bernard Looney, in an email, told the employees that the job cuts were essential to help the company to tide over the global collapse in oil demand on the back of the coronavirus pandemic.
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"You are already aware that, beyond the clear human tragedy, there has been widespread economic fallout, along with consequences for our industry and our company,"said Looney's mail.
He noted that the oil price has plunged well below the level the company needs 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 bn in the first quarter," the CEO said.
BP has a significant stake in India. With several investments and employing around 7,500 people in the oil, gas, lubricants and petrochemicals businesses, BP is one of the largest international energy companies in India.
In addition to its gas value chain alliance with Reliance Industries Lts, BP's activities include Castrol lubricants, the licensing of competitive petrochemical technologies, oil and gas trading, clean energy projects through investment in Lightsource BP, IT and procurement back office activities, staffing and training for BP's global marine fleet, and the recruitment of skilled Indian employees for its global businesses.
India Gas Solutions Private Ltd, a 50-50 joint venture to source and market gas in India, is also part of BP's gas value chain alliance with RIL.
Last December, BP and RIL signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture.
The Competition Commission of India in April has approved the joint venture between RIL and the British energy major in the retail fuel segment.