According to Reuters, multiple sources have revealed that BP's electric vehicle charging business, bp pulse, has cut more than ten percent of its workforce and exited several markets due to the lack of returns from its rapid growth in commercial electric vehicle fleets.
Reuters' report notes that BP CEO Murray Auchincloss is working to focus the company on the most profitable business areas, and the changes in the bp pulse business are part of this plan. Currently, investors remain skeptical about BP's transition from oil and gas to low-carbon energy.
BP pulse told Reuters that the company has reduced the number of operational markets from 12 to 4 in recent months, focusing on the United States, the United Kingdom, Germany, and China as these markets are expected to see the fastest growth in electric vehicle adoption.
Sources say that BP pulse has recently laid off over 100 employees in the past few months, representing over 10% of its global workforce of 900 employees. However, many employees have been redeployed to other business units, with only a few leaving the company. BP declined to comment on the specific number of layoffs.
Nevertheless, the electric vehicle charging business remains one of BP's five key growth engines. The company anticipates that customers will spend more time at its convenience stations while using fast charging stations to charge their vehicles.
According to BP's latest annual report, by the end of 2023, the company had over 29,000 charging points globally, up from 22,000 the previous year, with a target of reaching 100,000 charging points by 2030. BP stated, "Our electric vehicle ambitions remain unchanged," and the decisions regarding bp pulse are "to ensure we can more precisely and effectively achieve our goals."
Auchincloss had previously told analysts in February that BP initially expected a significant shift to electric vehicles in commercial fleets, which did not materialize partly due to governments easing requirements for electrification. Auchincloss said, "We expected the fleet to lead, but with the pressures of the economic downturn and government easing, the pace of electrification of fleets has slowed."
BP expects a return on investment of over 15% for its electric vehicle charging and convenience store business by 2025, with profit before interest, taxes, depreciation, and amortization reaching $1.5 billion.
Reuters notes that as BP pulse makes these decisions, the global adoption of electric vehicles is slower than expected. An internal memo indicates that Tesla, a leader in electric vehicles, plans to lay off over 10% globally to address declining sales and intensifying price wars in the electric vehicle market.
