In an effort to simplify its upstream and downstream activities and corporate functions, British oil giant BP intends to spend $1bn over the next 12 months on a company-wide restructuring plan. The company said it will also review its capital expenditure plans for 2015, as oil prices have reportedly fallen by 40 percent since summer. The news comes shortly after BP announced plans to slash hundreds of back office jobs.
“We have already been working very hard over these past 18 months or so to right-size our organisation as a result of completing more than $43bn of divestments,” BP Group chief executive Bob Dudley was quoted as saying by the BBC. “The simplification work we have already done is serving us well as we face the tougher external environment. We continue to seek opportunities to eliminate duplication and stop unnecessary activity that is not fully aligned with the group’s strategy.”
