BP notified its 3,300 employees in its suburban Chicago offices Thursday that many could be laid off, and many more could be headed to Houston.
According to Reuters reports, Chief Executive Tony Hayward wants to slash management layers and concentrate resources to standardize procedures across the board to trim the budget.
Spokesman Scott Dean told Reuters the company was going to "reduce the duplication" of having two corporate centers and relocate much of the office staff to the company's U.S. headquarters in Houston.
The company did not provide specifics on how many jobs would be cut, or how many jobs will be affected by the reorganization.
U.S. supply and trading staff offices will stay in Chicago, moving to a new downtown office.
Relocations to Houston are expected to begin in the summer of next year to coincide with the expansion of BP's energy corridor campus.