BP announced Thursday it will cut around 4,700 staff, or over 5% of its total workforce, as part of CEO Murray Auchincloss' efforts to reduce costs.

BP told staff that 3,000 contractor positions will also be cut, according to a statement to Reuters. The cuts were announced in an internal memo seen by Reuters earlier on Thursday.

Auchincloss last year vowed to reduce the British company's costs by at least $2 billion by the end of 2026 as part of his drive to boost returns amid investor concerns over its energy transition strategy and following the abrupt resignation of his predecessor Bernard Looney in September 2023 for failing to disclose relationships with employees.

The job cuts follow reviews of all of BP's divisions and are expected to be made this year. BP has a workforce of around 90,000.

"We have got more we need to do through this year, next year and beyond, but we are making strong progress as we position bp to grow as a simpler, more focused, higher-value company," Auchincloss said in the memo.