BP claims job cuts will result in cheap energy - 03/04/2009
Oil giant BP has claimed that cutting 620 jobs from its solar power business will benefit customers looking to compare energy companies' prices.
Over 25 per cent of the company's workforce will be made redundant from plants in Spain and the United States in response to the global downturn and the pressure of undercutting from rivals.
Despite the development, BP claims production of solar power technology will actually increase through a range of existing partnerships with additional businesses.
Reyad Fezzani, chief executive of BP Solar, said: "The decision is part of the long-term strategy to reduce the cost of solar power to that of conventional electricity."
The job cuts are likely to fuel speculation that BP is planning to distance itself from further investment in the renewable sector as a result of the pressures of the financial crisis.
Energy companies in the UK are focussing primarily on wind farm development to reduce carbon emissions, but several major projects are currently in doubt due to investment issues.
Offshore wind farms have proven far more popular in concept as their onshore equivalent can have a dramatic effect on the landscape.
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