BP Announces $1 Billion of Anticipated Restructuring Costs

Published at 11:53AM - 11/12/14

BP has warned investors that it expects its corporate restructuring bill to hit $1 billion in 2015, as the company’s leadership team seeks to simply its operation and rationalise corporate functions. The company said that it also intended to review CAPEX plans for the year ahead because of the falling oil prices, with a view to making the business more competitive and stronger.

The news came as BP shared its longer-term plans for its upstream business. Bob Dudley, the Group CEO, said that his team had been working diligently over the past eighteen months to ‘right-size’ the company following a programme to divest BP of over $43 billion worth of assets. As a result, he said, the business was now more focused and hadn’t compromised its record for reliability and safety. He added that the business rationalisation had also helped BP to face the difficult external operating environment, and that it would continue to seek opportunities to strip out duplication and cease activities that did not support the group’s long-term strategy.

Earlier in December, BP announced that it would be speeding up its plans to slash hundreds of office-based roles. The company employs around 15,000 staff in the UK.

Last updated on 12:10PM - 15/12/14