British vitality large BP Plc is anticipated to offer an replace on its $5 billion cost-cutting initiative on Tuesday, as activist hedge fund Elliott Management will increase strain for additional reductions.
The hedge fund, which holds simply over a 5% stake in BP, has particularly highlighted “tens of thousands” of worldwide help employees as a key space for price discount. Elliott additionally seeks broader modifications, together with:
Cutting annual capital expenditure to round $12 billion, down from the present vary of $13–$15 billion
Replacing BP’s technique chief
Splitting upstream and downstream operations into separate enterprise items to extend accountability
BP has already shaved $750 million off its price base this yr, and goals to achieve its broader goal by a mixture of job cuts, asset gross sales, and provide chain streamlining, the FT stated.
Both BP and Elliott Management declined to remark when contacted by Reuters, and the FT report couldn’t be independently verified.
Elliott’s mounting calls for replicate rising investor impatience with the tempo and path of BP’s transformation efforts, notably as world vitality markets stay risky.
