(Alliance News) - BP PLC will slash 15% of its workforce, Reuters reported on Monday, despite the oil major still paying dividends.
Chief Executive Bernard Looney told the company's employees during an online town hall call that 10,000 jobs will go by the end of 2020.
https://uk.reuters.com/article/uk-bp-jobs-exclusive/exclusive-bp-to-cut-15-of-workforce-sources-idUKKBN23F1D0
Back in April, BP declared a first-quarter dividend of 10.5 US cents, up 2.4% from 10.25 cents declared in the fourth quarter and first quarter of 2019.
It was despite oil prices coming under pressure amid infighting between producers and the Covid-19 pandemic slashing demand for the commodity.
Prices have since recovered somewhat, a barrel of brent changed hands at USD42.06 each on Monday afternoon. The North Sea benchmark hit a high of USD43.30 overnight - its highest level in three months. A month ago, Brent was struggling to trade above USD30 a barrel, while the near-contract futures price of US benchmark West Texas Intermediate actually fell below zero.
For the quarter ended March 31, underlying replacement cost profit - BP's preferred profit metric - was USD0.8 billion, down 67% from USD2.4 billion for the same period a year earlier.
Shares in BP were 2.9% higher at 372.80 pence each in London on Monday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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