By Ron Bousso

LONDON (Reuters) – BP will cut more than 5% of its global workforce, it said on Thursday, as part of CEO Murray Auchincloss’ efforts to cut costs and rebuild investor confidence in the energy giant.

About 4,700 employees and 3,000 contractor positions will be cut this year, BP (NYSE: ) told Reuters. The cuts were announced in an internal memo seen by Reuters on Thursday.

BP shares were up 1.8% at 1110 GMT.

Auchincloss last year said it would cut costs at the British company by at least $2 billion by the end of 2026 to boost returns and address investor concerns about its energy transition strategy.

He is also seeking to restore trust after the sudden resignation of his predecessor Bernard Looney in September 2023 for failing to disclose relationships with employees.

The job cuts follow reviews of all BP divisions. The exact breakdown of the cuts was not disclosed. BP has a workforce of around 90,000.

“We still have a lot to do 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.

The group’s shares have underperformed most of its rivals over the past year, falling more than 5%, similar to French rival TotalEnergies (EPA: ) and compared to a 5.5% gain for Shell (LON: ) and Exxon Mobil (NYSE: )’s 14% gain.

Auchincloss, who took office a year ago, will set out his new strategy at an investor day on February 26.

He has already taken major steps to reverse his previous strategy of staying away from oil and gas.

As part of a new effort to reduce exposure to renewables, BP and Japanese power generator JERA last month agreed to join forces to form one of the world’s largest offshore wind operators.

Rival Shell has also made cuts to its workforce in recent years as part of CEO Wael Sawan’s cost-cutting drive. That includes a 20% reduction in its oil and gas exploration division and cuts in its low-carbon division.

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