BP recently announced a major workforce reduction, eliminating 4,700 full-time positions and 3,000 contractor roles - about 5% of their 90,000-person workforce. The cuts are part of a $2 billion cost reduction plan to streamline operations and improve competitiveness in a changing energy market. If you're facing a potential layoff, this guide outlines what to expect from BP's severance package and how it compares to other energy companies.

BP Layoffs 2025: What We Know So Far

CEO Murray Auchincloss announced the news in an internal memo, stating BP is focusing on "our highest-value opportunities". The company plans to implement these cuts throughout 2025, with 2,600 contractors already departed. These reductions are expected to affect multiple departments and regions, though specific details about impacted areas are still emerging.

Past BP Severance Package Trends

Recent Years at BP

BP's severance packages have generally been competitive, with terms varying by location, role, and tenure. The company has maintained relatively consistent practices across different restructuring periods, though the specifics have evolved. Here's what we've gathered from employee reports:

"Reinvent" Program Severance

During BP's "Reinvent" restructuring in 2020-2021, employees received substantial packages that set industry benchmarks:

• One month of pay per year at BP (rounded up for recent work anniversaries)
• Full payout of unused PTO with no deductions
• Senior staff often received 12 to 14 months of base pay plus prorated bonuses
• Stock options and RSUs were handled according to standard vesting schedules

Career transition support was included, though quality varied by location. Some employees reported access to premium outplacement services, while others received more basic support.

Changes After "Reinvent"

By 2022-2023, BP adjusted these benefits in response to changing market conditions:

• Two weeks of pay per year of service became standard across most regions
• Health benefits continued for a set period, typically matching severance duration
• Standard job search support and resume review services
• More streamlined processing of final payments and benefits

UK employees had different terms under the Discretionary Enhanced Redundancy Terms (DERT), receiving three weeks per service year up to two years' salary. These terms weren't guaranteed and could change based on business conditions and local regulations.

Office Closure Packages

When BP closed specific sites like the OKC Lower 48 office, the process revealed some challenges in standardizing severance terms:

• Benefit details lacked clarity across different employee categories
• Employees reported inconsistent information about bonuses and healthcare extensions
• Relocation opportunities varied significantly by role and department
• Treatment of performance bonuses and long-term incentives wasn't uniform

Industry Severance Comparison

BP's packages generally align well with other oil companies, though each company has distinct approaches to handling layoffs. Here's what we've heard from various sources:

Shell

Shell provides three weeks of pay per year, maxing out at 78 weeks (1.5 years) based on employee discussions. They're known for maintaining consistent severance practices across regions and including comprehensive outplacement support in their packages.

ExxonMobil

ExxonMobil historically offered one month per year, capped at 24 months. Recent reports indicate a shift to three months plus insurance, suggesting a policy update. Their approach to handling equity compensation has typically been more generous than industry averages.

Chevron

Chevron historically offered three weeks per year, up to one year's pay. They often include a full year of COBRA coverage instead of the standard six months, and their career transition services are frequently cited as particularly comprehensive. Some employees have reported additional consideration for education assistance and certification programs.

Expected 2025 BP Severance Terms

Based on BP's history and industry standards, here's what to expect from the upcoming round of separations:

Financial Package

• Two to Four Weeks per Service Year: Most employees receive two to four weeks of base pay per year, with a minimum payout guaranteed. Long-term employees could see a year-plus of salary, though additional weeks decrease after 12 years. The calculation typically includes base salary only, not bonuses or other compensation.
• Executive Packages: Senior leaders typically receive 12 to 14 months of base pay plus bonus and equity considerations. These packages often include accelerated vesting of certain equity awards and pro-rated performance bonuses.
• Regional Variations: Some regions like the UK cap total payouts at two years' salary under their DERT system. International packages are usually adjusted for local labor laws and market practices.

Health Coverage

• Extended Benefits: Typically six to twelve months of COBRA or similar coverage, based on location. The duration often aligns with the length of severance pay.
• International Differences: Countries with robust public healthcare might see higher cash compensation instead. Some regions offer additional wellness benefits or healthcare transition support.

Additional Benefits

• Career Support: Standard job search assistance, resume workshops, and career guidance. Some locations may provide access to executive coaching or industry networking events.
• Bonus Treatment: Senior staff may receive prorated bonuses, following past practices. Treatment of long-term incentives varies by level and circumstance.

2025 Package Summary

• Cash: 2-4 weeks per year; 12-14 months for executives; some regions cap at 24 months
• Healthcare: 6-12 months of COBRA or equivalent
• Support: Resume assistance, job placement, career coaching
• Bonuses: Potential prorated payouts depending on role

Next Steps

While we await BP's official 2025 terms, their track record suggests the packages will remain competitive within the energy sector. The more data we collect, the better positioned everyone is to negotiate fair packages. By contributing your severance details with our fired.fyi database, you'll not only gain access to our comprehensive severance comparisons but also help others in similar situations secure better terms.

Remember, information is power in severance negotiations. The more reference points you have, the stronger your position. If you have questions about your specific situation, consider consulting an employment attorney who can provide guidance tailored to your circumstances.

This transition might feel overwhelming now, but there's a strong job market for experienced energy sector professionals. Many who've gone through similar transitions have found even better opportunities ahead. We're here to help you make the most of your severance package so you can focus on your next chapter.