BP to slash thousands of jobs in a bid to save money.

• BP announced that the proposed changes will affect approximately 4700 roles, accounting for most of the anticipated reduction this year, according to a statement by the company.
• The company added it is also reducing contractor numbers by 3,000.
• Despite outperforming its European rivals in the past, BP has recently underperformed as energy market participants question the firm's investment case.

On Thursday, BP announced plans to reduce its workforce through job cuts, as part of a cost-saving initiative.

BP announced that the proposed changes will affect approximately 4700 roles, accounting for most of the anticipated reduction this year, according to a statement by the company.

The company announced that it will decrease its contractor count by 3000.

BP CEO Murray Auchincloss announced last year that the company aims to achieve at least $2 billion in cost savings by 2026 through the implementation of measures.

BP's workforce currently stands at around 87,800.

Shares of the company traded 1.4% higher on Thursday morning.

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Despite outperforming its European rivals in the past, BP has recently underperformed as energy market participants question the firm's investment case.

BP announced in a trading update on Tuesday that weaker refinery margins and turnaround activity will result in a potential loss of $100 million to $300 million for its fourth-quarter profit, with further declines anticipated in oil production.

The energy company has scheduled to release its quarterly and full-year earnings on February 11th.

BP announced that it had postponed an investor event next month to allow its CEO to fully recover from a planned medical procedure. Auchincloss was reported to be recovering well from the procedure, which had not been previously disclosed.

The capital markets event, originally scheduled for New York on Feb. 11, has been moved to London on Feb. 26.

— CNBC's Ruxandra Iordache contributed to this report.