NEW YORK (TheStreet) -- Shares of BP (BP) are down 0.67% to $38.26 in pre-market trade after it was reported that the integrated oil and gas company will cut hundreds of jobs across its global oil and gas business by the end of next year in a $1 billion restructuring program announced today, following the steep fall in oil prices, Reuters reports.
The majority of the costs will go towards staff redundancies in all segments, including oil exploration and production, refining and trading and administration, according to the company.
The British firm said a first charge will be taken in the fourth quarter of 2014 as it implements a plan drawn up over the past 18 months to increase efficiency, Reuters said.
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TheStreet Ratings team rates BP PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."