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Photo: Gregory Shamus/Getty Images

BP plans to cut its global workforce by 10,000 jobs, or 14%, with most of the reduction occurring by year's end, the company announced this morning.

Driving the news: "The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritizing safe and reliable operations," CEO Bernard Looney said in an email to staff that he made public.

  • The move will have a significant effect on senior-level workers as the company moves toward a "flatter" structure, spokesperson David Nicholas added in an emailed summary.

Why it matters: It signals the pandemic's effect as oil companies including BP slash spending amid the crisis that has pushed prices and oil demand sharply lower.

  • "We are spending much, much more than we make — I am talking millions of dollars, every day," Looney said in the email, which followed a webcast on the topic.
  • For BP, it comes as the oil giant is also repositioning itself to grow its low-carbon business (though oil-and-gas remain its dominant products) and aiming to become a "net-zero" company by mid-century.

The big picture: BP officials note that even before the crisis, the company had signaled early this year that it planned to become, as Looney's email notes, a "leaner, faster-moving and lower carbon company."

  • "These plans and actions have been accelerated and amplified by the need to respond to market conditions and reduce our  costs," Nicholas said.

Go deeper

Ben Geman, author of Generate
Aug 5, 2020 - Energy & Environment

Shale's struggles will persist despite a rise in oil prices

Illustration: Sarah Grillo/Axios

WTI, the benchmark U.S. oil future, traded Wednesday morning at its highest since early March — highlighting how the worst of shale's crisis is seemingly over, though more bankruptcies likely lie ahead.

Why it matters: Its price at the time — $43 — is still too low for many producers to do well, though it varies from company to company.

Ben Geman, author of Generate
Aug 5, 2020 - Energy & Environment

Electric vehicle startup Nikola claims progress but stock plunges

Illustration: Aïda Amer/Axios

Nikola Corp., a company planning to build electric and hydrogen fuel-cell trucks, posted an $86.6 million quarterly net loss Tuesday in what was its first earnings report after going public in June.

Why it matters: Nikola is attracting lots of attention for plans to build a line of semi-trucks, as well as a pickup, in the coming years as it tries to break through in those fledgling markets.

8 hours ago - Health

Food banks feel the strain without holiday volunteers

People wait in line at Food Bank Community Kitchen on Nov. 25 in New York City. Photo: Michael Loccisano/Getty Images for Food Bank For New York City

America's food banks are sounding the alarm during this unprecedented holiday season.

The big picture: Soup kitchens and charities, usually brimming with holiday volunteers, are getting far less help.