British multinational oil and gas company BP announced on Thursday that it would reduce its workforce by thousands as part of a significant cost-cutting initiative. The company aims to streamline its operations and reduce expenses in response to challenging market conditions and the ongoing transition towards cleaner energy sources.

BP, which employs around 4,000 in Houston, will eliminate thousands of roles to cut costs, according to reports from Associated Press and Wall Street Journal.

U.K.-based oil company is cutting 4,700 jobs worldwide and a further 3,000 contractor roles as part of a cost-saving drive.

Confirming the job losses, the FTSE 100 company said the reduction in its workforce was down to cost cutting measures.

The energy giant employs around 14,000 workers in the UK, although there’s no information as yet as to how many British workers will be impacted.

British energy giant BP says it will axe 4700 staff jobs, about 5% of its workforce, and is cutting thousands of contractor roles to reduce costs. The move is part of a “multi-year programme to simplify” the group and improve performance,

Job cuts and hiring freezes are in focus following announcements from several companies, including oil and gas driller BP (BP), Southwest Airlines (LUV), Meta Platforms (META), Albertsons (ACI), and Microsoft (MSFT).

BP is planning to cut more than 5% of its 90,000-strong workforce as part of a cost-cutting drive. The British oil giant told employees in a memo Thursday that it would slash around 4,700 jobs this year.