BP to cut workforce and spending as oil prices slide

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BP to cut workforce and spending as oil prices slide

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A big downsizing has been announced at BP.

As oil prices continue to fall, the British energy firm is to cut hundreds of jobs worldwide.

The restructuring will cost one around one billion dollars (808 million euros).

Most of the money will go towards redundancies in all areas of its business in Britain, the United States and elsewhere.

By the end of next year there will be lay offs in oil exploration and production, refining and trading and administration.

BP said it had been planning improved efficiency for 18 months, but was also now considering further cuts to its 2015 spending programme.

A cost cutting drive in recent years has seen BP sell over $43 billion worth of assets to cover the cost of the 2010 Gulf of Mexico crude oil spill as well as the oil sector’s rising costs.

A sharp drop in oil prices – from around $115 a barrel to around $65 a barrel since June – has piled further pressure on BP and its peers as revenues slump.