LONDON (AP) – UK-based oil company BP is cutting 4,700 jobs worldwide and another 3,000 contractors as part of a cost-saving drive.

In an email to staff on Thursday that was seen by The Associated Press, CEO Murray Auchincloss said the job losses “responsible for much of the planned reduction this year.”

The cuts represent just over 5% of BP’s 90,000 employees worldwide. Auchincloss’ memo said around 2,600 of the contractors involved in the job cuts have already left the business.

Last October, the company said it had identified $500 million in cost savings to deliver this year, a quarter of the $2 billion target set in April by the end of 2026.

Auchincloss said the company is “focusing resources on our highest value opportunities” and has halted or halted 30 projects since June.

The cuts come as BP tries to bring more digital capabilities to the business, with artificial intelligence becoming increasingly important in engineering and marketing operations.

In April, Auchincloss announced a plan to save $2bn (£1.6bn) by the end of 2026.

The plan is designed in part to revitalize the company’s stock price, which has fallen about 20% since last spring.

BP has also pulled out of a number of renewable energy projects and, according to media reports, abandoned an earlier plan to cut oil and gas production by 40% by 2030.

Auchincloss, however, said the company was still “uniquely positioned to grow value through the energy transition” but needed to “continue to improve our competitiveness and move at the pace of our customers and society”.

It comes days after BP delayed an investor event that was due to be held in New York to allow the CEO to recover from a medical procedure. His capital markets event scheduled for February 11 has been postponed until February 26 and will take place in London “to ensure his full recovery”.