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FT reports that BP will update its progress on cost cutting as Elliot puts more pressure on the company.

The Financial Times reported that BP would announce an update on its $5 billion cost cutting initiative on Tuesday amid increasing pressure from activist investors Elliott Management to take more action to reduce operating expenses.

Elliott wants BP's CEO Murray Auchincloss, who announced in February that he would reduce costs by $4-$5 billion between 2023 and 2027 from a baseline of 2023, to add an additional $5 billion to those savings.

Could not verify the report immediately. BP and Elliott didn't immediately respond to a comment request.

Report added that the hedge fund "identified tens and thousands of BP staff worldwide" as an example for the cost base.

The FT reported that BP had already reduced its costs by $750 million towards its 2024 target and was looking to achieve its cost saving target through job reductions, divestment, and streamlining its supply chains.

reported

In April, the activist investor said that he would like BP's spending to be cut to $12 billion a yearly, from a range of $13 to $15 billion currently, until 2027. He also wants to deepen cost reductions, particularly on administrative costs.

Elliott, which owns a little over 5% of BP, is also

The oil major will replace its chief strategy officer and create separate units to oversee upstream and downstream activities in order to improve accountability.

(source: Reuters)