British energy company BP is planning to cut approximately 700 jobs as part of a wider restructuring programme aimed at simplifying its operations, reducing debt and improving profitability.

According to an internal company email reviewed by Reuters, the affected positions are mainly non-frontline roles within the production and operations business, while technicians and field workers are expected to be largely unaffected.

The restructuring forms part of BP’s broader strategy to become a leaner organisation while focusing more heavily on its core oil and gas operations.

The company has recently shifted some investment away from renewable energy projects in favour of increasing returns from traditional energy businesses, reflecting changing market conditions and shareholder expectations.

BP said the organisational changes are intended to create a “simpler, stronger and more valuable company.”

Employees whose roles are affected may be reassigned, have their responsibilities significantly changed or leave the organisation as the restructuring progresses.

The company said it will continue consulting with staff throughout the process.

Industry analysts noted that many global energy companies are reviewing their operating structures because of volatile oil prices, rising production costs and the ongoing transition toward cleaner energy.

Companies are under increasing pressure to improve efficiency while maintaining strong shareholder returns and investing in future energy technologies.

Market observers believe BP’s restructuring reflects wider changes taking place across the global energy industry.

Analysts expect energy companies to continue balancing investments in traditional oil and gas production with long-term commitments to lower-carbon energy solutions as market conditions evolve.

Source: Reuters