Oil Giant BP To Cut 4,000 Jobs As Crude Price Hits Fresh Lows

Oil giant BP is cutting up to 4,000 jobs in exploration and production over the next two years amid steady decline in the price of crude.

The cost-cutting measures were announced Tuesday as the price of oil dropped to a 12 year-low near $31 a barrel. Part of the decline is due to concerns that demand from China, the world’s top importer of oil, is also slowing.

The job cuts will include some 600 in the North Sea.

Company officials began notifying employees of the action in town hall meetings in Scotland.

Mark Thomas, regional president for BP North Sea, says in a statement that because of toughening market conditions “we need to take specific steps to ensure our business remains competitive and robust.”