London, UK (BBN)- Oil giant BP has announces up to 3,000 new job cuts after revealing that its annual underlying profits have more than halved.
BP said its profits had fallen by 51per cent to $5.9bn (£4.1bn), compared with $12.1bn in 2014, reports BBC.
Underlying fourth-quarter profits fell to $196m, compared with $2.2bn for the same period in the previous year.
Last year, it said 4,000 jobs would go in its upstream division as part of a $2.5bn restructuring programme.
BP said its upstream business, which covers exploration and production, slumped to a $728m loss in the final quarter.
The latest reduction of up to 3,000 jobs by the end of 2017 affects staff and contractors in its downstream segment.
This refers to its refined oil products, such as fuel, lubricants and petrochemicals, for making products such as paint and plastic bottles.
The oil giant was the biggest faller on the FTSE 100 index, tumbling 8.1per cent by mid-morning.
Bob Dudley, BP’s group chief executive, said the company was making good progress in managing and lowering costs and capital spending.
“We are continuing to move rapidly to adapt and rebalance BP for the changing environment,” he added.
Oil prices have been hit by the slowing global economy, the strong US dollar and oversupply.
BP’s dividend will remain unchanged at 10 cents per ordinary share for the quarter.
Sanjiv Shah, chief investment officer at Sun Global Investments, said: “The short term looks difficult but shareholders should be encouraged by the fact that a pick-up in prices is expected soon and that BP management are committed to continue paying out current dividend levels.”