Murray Auchincloss, BP CEO, during a panel session in Abu Dhabi in late 2023. CREDIT: Christopher Pike/Bloomberg via Getty Images.

Energy giant BP is set to cut nearly 8,000 jobs around the world, as net zero rules and tougher economic conditions put the oil and gas producer and seller under pressure.

The company will reportedly cut 4,700 jobs across its 90,000 global workforce. In addition, it will remove 3,000 contractor roles as part of the new strategy.

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BP has around 6,000 workers at services stations across the UK, with several local media sources indicating that they will not be affected by the cuts.

The UK is currently winding down its North Sea oil and gas exploration, and attempting to move the nation’s energy production to an array of renewable power sources.

The UK has also implemented a higher windfall tax on oil and gas producers’ profits.

Murray Auchincloss, BP’s CEO, said last year he intended to cut costs by $2bn by the end of 2026. The cuts are being implemented to try and raise the company’s share price, which fell around 20% last year.

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Auchincloss wrote in an email on Thursday: “I understand and recognise the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams.”

BP expects lower production in the upstream segment in the fourth quarter (Q4) compared with Q3, affecting both oil production and operations and gas and low-carbon energy.

It has indicated that its Q4 results will be adversely affected by several factors including reduced oil and gas production, refining margins and trading performance.

In the upstream segment, BP expects lower production in Q4 compared with the previous quarter, affecting both oil production and operations and gas and low-carbon energy.