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

Oil's coronavirus recovery is stuck in neutral

Data: FactSet; Chart: Axios Visuals

Crude oil is languishing in the "friend zone," and that's not enough for substantial swaths of the ailing sector.

The state of play: U.S. prices have hung out in the roughly $40-per-barrel range (and sometimes lower) for the last month after sharply recovering from the depths of April's price and demand collapse.

Electric vehicle companies are reeling in cash without producing a car

Illustration: Sarah Grillo/Axios

These are heady days for electric vehicle companies, with a lack of actual car production becoming a popular norm.

Why it matters: The capital infusion is the latest in a busy stretch of deals and market moves that suggest private investors and equity markets see big potential in technologies that now represent a tiny slice of the global vehicle fleet.

Updated 56 mins ago - Politics & Policy

Federal government carries out first execution since 2003

Lethal injection facility in San Quentin, California. Photo: California Department of Corrections and Rehabilitation via Getty Images

The first execution carried out by the federal government since 2003 took place on Tuesday at a federal prison in Indiana after an early-morning Supreme Court decision allowed it to move forward, the Washington Post reports.

The big picture: A lower court had delayed the execution, saying inmates had provided evidence the government's plan to carry out executions using lethal injections "poses an unconstitutionally significant risk of serious pain."