• BP announced on Thursday that it would cut thousands of jobs.
• The cuts will affect 4,700 staff positions and 3,000 contractor roles.
• BP said it was part of a program to "simplify and focus" the oil giant.

The oil giant BP is cutting thousands of jobs, the company announced on Thursday.

In a statement sent to Business Insider, it said some 4,700 positions would be eliminated, while the number of contractors would be reduced by 3,000.

It said the cuts, which amount to about 5% of its workforce, were part of a program to "simplify and focus" BP that began last year.

"We are strengthening our competitiveness and building in resilience as we lower our costs, drive performance improvement and play to our distinctive capabilities," the statement added.

"As our transformation continues our priority will — of course — be safe and reliable operations and continuing to support our teams."

Bloomberg first reported the job cuts.

"I understand and recognize the uncertainty this brings for everyone whose job may be at risk, and also the effect it can have on colleagues and teams," CEO Murray Auchincloss told staff in an email seen by the outlet.

BP shares rose by as much as 1.7% in London before paring gains.

Thursday's announcement comes during a testing time for BP.

Its stock price has fallen by 5% over the past year while those of its competitors Shell and ExxonMobil have risen by more than a tenth.

Auchincloss is expected to try to reassure stakeholders at an investor day next month. On Tuesday, BP postponed it from February 11 to February 26 and moved the location from New York to London, saying the CEO was recovering from a medical procedure.

The firm's difficulties have been linked to its previous CEO Bernard Looney's decision to significantly cut oil and gas production and build a portfolio of green-energy businesses.

Looney resigned in 2023 after failing to fully disclose past relationships with coworkers.

BP is also struggling to reduce its debt levels as it continues to spend on transitioning to low-carbon energy.