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In an e-mail to employees, CEO Bernard Looney announced the task cuts, which work out to about 15%of the company’s labor force.
Today’s statement came out even as lots of oil stocks rallied, following news that the OPEC group of oil-producting countries had accepted extend their record oil output cuts deal through the end of July.
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” Can’t make worries vanish”
In the e-mail, which was gotten by numerous media outlets, Looney pointed out that BP, like many major oil companies, continues to burn more cash than it is earning with every passing day. After putting it off for 3 months, BP is joining the ranks of other oil and gas majors to cut personnel.
As Looney put it to staff members, he “can’t make [their] concerns vanish.” BP reported as $4.4 billion loss last quarter, and a nearly 90%consecutive decline in running cash flows. Free cash flows fell from nearly $4 billion in the prior quarter, to $2.84 billion in negative totally free cash flows.
Riding out a drawn-out slump
Even though numerous oil stocks have rallied over the past month on rising crude costs and huge declines in oil production, oil producers continue to book enormous losses.
To ride out that downturn, BP is taking steps to cut costs. Another 10,000 individuals will be hitting the global unemployed ranks as an outcome.
Jason Hall has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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Jason Hall has no position in any of the stocks pointed out.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy