BP says will cut more jobs despite soaring profits

The business daily quoted BP chief executive Tony Hayward as saying that he expected the total number of job cuts would be "materially higher" than the 5,000 already announced.

 

Hayward told the FT that he would maintain a "continuous focus to drive productivity and efficiency into BP," as the oil industry faces a sharp slowdown in both global economic growth and energy demand.

 

In late 2007, the BP chief launched a major restructuring to streamline the group. BP has previously stated that it was seeking to axe 5,000 jobs, around 3,500 of which have already been cut.

 

On Tuesday, BP said that third-quarter net profit soared 83 percent to $8.04 billion (6.43 billion euros) on record high oil prices which have since slumped.

 

Net profit, excluding gains from the value of its crude oil inventories, rocketed 148 percent to $10.03 billion in the three months to September, compared with the same period of 2007.

 

World oil prices had struck record pinnacles above $147 dollars per barrel in July on global supply concerns.

 

However, they have since plunged by almost 60 per cent, diving underneath $60 per barrel this week as traders fretted about the impact of a worldwide economic slowdown.