BP announced today that it will make cuts of more than 5% of its global workforce as part of Chief Executive Murray Okinclos’ efforts to reduce costs and restore investor confidence in the energy giant.

About 4,700 workers and 3,000 contract workers will be laid off this year, BP told Reuters. The cuts were announced via a staff memo seen by Reuters earlier today.

BP shares were up 1.8 percent at 11:10 GMT (13:10 GMT).

Okinclos had said last year that he would cut the British company’s costs by $2 billion by the end of 2026 to boost returns and assuage investor concerns about its energy transition strategy.

He is seeking to restore confidence following the abrupt resignation of his predecessor Bernard Looney in September 2023 for failing to disclose his relationships with employees.

The employee cuts affect all BP divisions. The exact breakdown of the cuts was not disclosed. BP has a workforce of about 90,000 employees.

“We have much more to do this year, next year, and beyond, but we are making great progress as we position BP to grow as a simpler, more focus,d and higher value company,” Okinclos said in his memo.

The group’s shares have not been as profitable as those of its rivals over the past year, falling more than 5%, similar to its French rival TotalEnergies, compared with a 5.5% rise for Shell and a 14% rise for Exxon Mobil.

Okinclos, who took office a year ago, will present his new strategy to investors on February 26.

He has taken significant steps to undo his predecessor’s strategy of moving away from oil and gas.

As part of a new effort to limit exposure to renewables, BP and Japanese power generator JERA agreed last month to join forces to create one of the world’s largest wind farm management companies.

Rival Shell has also cut its workforce in recent years by adopting chief executive Wael Sowan’s policy of downsizing.

Those cuts included a 20% reduction in the oil and gas exploration division and cuts in the low-carbon division.

BP will publish its fourth-quarter and full-year results on February 11.