BP will cut hundreds of jobs across its operations as part of a $1 billion restructuring plan designed to bolster profit margins as oil prices continue to slump.
Job redundancies will account for most of the restructuring costs, with employees in oil exploration, production, refining, trading and administration expected to be affected by the cuts, BP said Wednesday.
The British major did not specify exactly how many jobs will be cut.
The $1 billion restructuring charge will be spread out over five quarters.
The first charge will be recorded during the fourth quarter 2014.
“As part of its wider ongoing group-wide program to simplify across its Upstream and Downstream activities and corporate functions, it expects to incur non-operating restructuring charges of circa $1 billion in total over the next five quarters, including the current quarter,” BP said.
The restructuring plan comes on the heels of a $43 billion divestment program that shrunk the company’s portfolio by a third since 2010.
BP said it is planning to sell off another $10 billion in assets by 2016.
As oil prices continue to hover around 4 year lows the company is also considering a second cut to its 2015 spending program.
In October, BP said it would cut its 2015 spending program by about $1 billion to $2 billion bringing spending its forecast to $24 to $26 billion dollars.
The company did not comment on how large the second cut could be.
“This will be reviewed further as part of the 2015 plan, recognizing the current outlook for oil prices,” BP said.