BP expects to take $1 billion in restructuring charges over the next year as it plans to accelerate job cuts and pare back its oil production business amid crumbling oil prices.
The British oil giant is gearing up to weather at least two years of lower oil prices and the contraction in the oil industry that goes with it, making plans to deepen cuts even after slashing $32 billion in oil-producing assets over the last 18 months, BP executives told investors in London on Wednesday.
In a written statement released in conjunction with the investor presentation, BP CEO Bob Dudley said shrinking the company by $43 billion in assets since last year has served it well in the tougher market, but it will continue to “eliminate duplications and stop unnecessary activity.”
“We are clearly a more focused business now,” Dudley said. “Our goal is to make BP even stronger and more competitive.”
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