BP is preparing to provide a crucial update on its $5bn cost-cutting programme on Tuesday, as activist hedge fund Elliott Management intensifies its campaign for deeper restructuring, according to a report by the Financial Times.

Elliott, which holds a stake of just over 5% in BP, is pushing for an additional $5bn in cuts beyond the $4bn–$5bn in savings already outlined by CEO Murray Auchincloss in February. The original targets are based on a 2023 baseline and are to be achieved by 2027.

The hedge fund is said to be pressing BP to reduce its annual capital spending to around $12bn, down from the current range of $13bn–$15bn, while also pursuing broader cost discipline. According to the FT, Elliott has specifically highlighted the scale of BP’s global support staff as a source of inefficiency.

BP has already made $750m in cost reductions so far in 2024 and plans to hit its overall target via a combination of job cuts, asset sales, and supply chain optimisation.

But Elliott is calling for further structural changes, including replacing BP’s chief strategy officer and splitting the company’s upstream and downstream businesses into separate units to sharpen operational focus and accountability.

Neither BP nor Elliott has commented publicly on the latest developments.