LONDON (AP) — U.K.-based oil company BP is cutting 4,700 jobs worldwide and an extra 3,000 contractor roles as a part of a cost-saving drive.

In an email to staff on Thursday that has been seen by The Associated Press, CEO Murray Auchincloss said the job losses “account for much of the anticipated reduction this yr.”

The reductions amount to only over 5% of BP’s 90,000 worldwide employees. Auchincloss’s memo said that about 2,600 of the contractors involved within the job cuts have already left the business.

Last October, the corporate said it had identified $500 million of cost savings to be delivered this yr, 1 / 4 of the $2 billion-target set in April by the top of 2026.

Auchincloss said that the corporate is “focusing resources on our highest-value opportunities” and that it has stopped or paused 30 projects since June.

The reductions come as BP tries to bring more digital capabilities into the business, with artificial intelligence increasingly playing a task in engineering and marketing operations.

In April, Auchincloss announced a plan to make savings of $2 billion (1.6 billion kilos) by the top of 2026.

The plan is designed partly to reinvigorate the corporate’s flagging share price, which has fallen about 20% since last spring.

BP also has pulled back from quite a few renewable energy projects, and based on media reports, abandoned a previous plan to chop oil and gas output by 40% by 2030.

Auchincloss, nonetheless, said that the corporate was still “uniquely positioned to grow value through the energy transition,” but that it needed “to maintain improving our competitiveness and moving on the pace of our customers and society.”

It comes days after BP delayed an investor event because of be held in Recent York to permit the CEO to get well after a medical procedure. Its scheduled capital markets event that was due on Feb. 11 has been postponed until Feb. 26 and can happen in London “to make sure his full recuperation.”