BP has implemented significant changes within its electric vehicle (EV) charging business, BP Pulse, including a reduction in workforce and a strategic shift in market focus. The restructuring, overseen by CEO Murray Auchincloss, reflects the company’s efforts to concentrate on its most profitable segments and address investor concerns regarding its transition from oil and gas to low-carbon energy.
BP Pulse has narrowed its geographic focus from 12 to four key markets: the United States, Britain, Germany, and China, with additional attention on Australia, New Zealand, and France for growth opportunities. This realignment has led to the reduction of over 10% of its global workforce, amounting to more than 100 jobs, as the company aims to optimize its operations and streamline its approach to the evolving EV market.
The decision to scale back operations in certain regions and refocus on fast charging hubs aligns with the evolving landscape of the EV industry, where expectations for rapid growth in commercial EV fleets have not materialized as anticipated. This shift in strategy acknowledges the challenges faced by automakers and the slower-than-expected uptake of EVs globally.
Despite these adjustments, EV charging remains a key growth engine for BP, with the company maintaining ambitious targets for expanding its charging infrastructure. With over 29,000 charging points globally at the end of 2023 and a goal to reach 100,000 points by 2030, BP remains committed to advancing its EV ambitions.
While BP Pulse has recalibrated its approach in response to market dynamics, the company continues to forecast significant returns from its EV charging and convenience stores operations, aiming to exceed a 15% return and generate $1.5 billion in earnings before interest, taxes, depreciation, and amortization by 2025.