Article below. Elliot appears to be pushing for additional cuts. Hard to see a scenario where leadership pushes back at this point. Look for Murray to signal additional layoffs tomorrow.
BP to report cost-cutting progress as activist Elliot ramps up pressure - FT
BP (NYSE:BP) will issue an update on its progress in its $5B cost-cutting initiative alongside its half-year results on Tuesday, the Financial Times reported Monday, as activist investor Elliott Management raises the pressure on the company to more aggressively rein in operating expenses.
Elliott, which has built a 5% stake in BP (NYSE:BP), wants CEO Murray Auchincloss to add another $5B of cost savings to the target announced in February of $4B-$5B of reductions by 2027 from a 2023 baseline, according to the report, adding the hedge fund has identified "tens of thousands of BP support staff globally" as an example of the company's bloated cost base.
BP (NYSE:BP) already has cut $750M of costs towards its target in 2024, and is looking to reach its cost savings target through job cuts, divestment and streamlining supply chains, but Elliott has questioned the credibility of BP's plan, estimating the net new cost savings in the plan will be closer to $1B after divestments and previously realized savings are excluded and new costs from growth are added, FT said.
Not all investors are aligned with Elliott's approach, the report said, citing one unnamed investor that sees "some upside to BP's stated target but doubling it to $10B seems overly aggressive."