BP to fire 7,000 employees following a disastrous year

BP to fire 7000 workers

BP has announced plans to cut 7,000 jobs after the company reported huge losses for the year ended 2015.

The company posted an annual loss of $5.2 billion, compared with a profit of $8.1 billion in 2014.

Most of the company’s losses were not related to falling oil prices, but rather fallout from the 2010 Gulf of Mexico disaster.

Stripping out one-off charges, profits dropped by 50% to $5.9 billion.

Earnings at the European oil company were worst than expected, causing shares in BP to drop by nearly 9% in London.

BP shares falling

The company says it will cut 7,000 jobs by the end of 2017 or 3,000 more positions than it was expecting to shed just three weeks ago.

The company took a hit in the 4th quarter because of restructuring charges and write-downs in its oil and gas exploration and production businesses.

BP took charges of $12 billion related to the Gulf of Mexico oil spill in 2015. BP has now paid $55.5 billion to deal with the oil spill.

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Written by Jeff Springer

Jeff Springer

Jeff Spring is the Finance & Markets Editor at BusinessPundit.com. He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated.