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BP is cutting 4,700 jobs, or more than 5 percent of its workforce, as part of an effort to save $2bn in costs and restore its share price.

The energy company also plans to cut the number of contractors it employs by 3,000 this year, adding 2,600 to those already leaving, according to a memo sent to staff by chief executive Murray Auchincloss.

In an email on Thursday, Auchincloss said the group was making “strong progress” to become a “simpler, more focused, higher-value company” but warned that the cuts only represented the target. this year.

Last year, Auchincloss announced a plan to cut $2bn in BPCosts in 2026.

BP shares rose nearly 2 percent in morning trade, but have fallen 5 percent since Auchincloss became chief on a permanent basis 12 months ago. The share price is behind rivals, including Shell, ExxonMobil and Chevron.

This is a developing story