BP Announces $2 Billion Cost-Cutting Plan Amid Lower Profits

The oil giant's profits fell short of expectations due to weaker oil and gas prices, prompting a significant reduction in operational costs by 2026.

BP's first-quarter profits in 2024 dropped to $2.7 billion from $4.9 billion a year earlier, missing analyst forecasts.
The decline in profits was attributed to lower fuel margins and an outage at a major U.S. refinery.
Despite reduced earnings, BP plans to maintain shareholder returns, announcing a $1.75 billion share buyback program.
The cost-cutting strategy includes digital transformation and supply chain efficiencies, aiming for a leaner operation by 2026.
BP's CEO emphasized a pragmatic approach to achieving net zero goals, focusing on value creation without excessive spending.