BP adds to energy job cuts; Multifamily builder confidence rises; Fannie, Freddie may get IPO; Inflation expectations increase

Energy giant BP’s revised plans to cut 6,200 jobs by year’s end, many of those at its U.S. headquarters in Houston, arrived as several firms are reducing costs in response to shifts in oil pricing, automation and federal government policy toward renewable energy. U.S.-based energy firms announced 8,416 job reductions in the first seven months of 2025, up from 6,282 in the year-earlier period, according to outplacement firm Challenger, Gray & Christmas.

London-based BP this month raised its previous expected job reduction tally, announced at 4,700 in January, as it seeks to reduce annual costs by $2 billion by 2026. BP employs about 4,000 in the Houston region, its biggest workforce contingent worldwide.

BP has about 40,000 office workers worldwide but did not provide location breakdowns for coming reductions. Most of the planned cuts will take place in this year’s fourth quarter, Chief Financial Officer Kate Thomson told analysts during BP’s latest quarterly earnings call.

Reductions come as BP scales back on renewable energy technologies to focus more resources on traditional oil and gas production. In addition to in-house staff, BP this year has cut 3,200 outside contractor positions, with another 1,200 reductions planned by year’s end, company officials said. Recent U.S. shifts have reduced federal government support for electric vehicles, solar panels and other types of clean-energy technologies.

Industry consolidation could bring further job cuts, after nine planned merger “megadeals” valued higher than $5 billion were announced worldwide in the first half of 2025, according to consulting firm PwC. The largest was Constellation Energy’s proposed $26.6 billion acquisition of Calpine Corp., creating the largest clean-energy provider in the United States, PwC said.

Confidence among multifamily builders increased in the second quarter compared with a year earlier, spurred by factors including newly passed legislation that increased federal funding available for affordable housing development, according to the latest tracking by the National Association of Home Builders.

Based on several metrics gauging market conditions, the trade group said confidence improved for both housing production prospects and occupancy demand, though both areas remain challenging by historical standards. On a scale of 0 to 100, the group’s multifamily production index posted at 46, up 2 points from a year earlier; and its multifamily occupancy index posted at 82, up 1 point from the second quarter of 2024.

“Multifamily developer confidence and sentiment are showing slight signs of improvement when compared to this time last year,” Debra Guerrero, chairman of the NAHB’s Multifamily Council, said in a statement. “High interest rates, rising construction costs, limited land availability and restrictive local regulations are still significant issues in certain parts of the country.”

Guerrero said builder confidence in subsidized housing posted “considerable improvement” in the latest multifamily survey, due in part to optimism surrounding expansion of federal funding for affordable housing development. Enhanced resources from low-income tax credits and other federal programs were included in the Trump administration’s “big beautiful bill” passed by Congress. 

Government-backed home lending agencies Fannie Mae and Freddie Mac could be heading for an initial public offering this year, with the potential to raise around $30 billion, according to The Wall Street Journal.

Citing sources, The Journal said President Donald Trump is preparing to sell stock in the mortgage giants that could value them at about $500 billion or more combined. The government would sell off between 5% and 15% of their stock, though it has not been determined whether the IPO would be structured for one company or two separate entities.

Fannie and Freddie bundle and sell mortgages, with government-backed guarantees to protect investors from losses. Newly passed federal legislation gave Fannie and Freddie increased resources to support affordable housing development through low-income tax credit programs. 

Consumer expectations for future inflation edged higher, though many were more optimistic overall about their household finances, according to the latest national survey by the Federal Reserve Bank of New York. Other surveys, including those by the University of Michigan and the Conference Board, have noted similar lingering price concerns tied to import trade tariffs.

July’s Fed survey showed respondents expect inflation to reach a median level of 3.1% a year from now, up from 3% in the prior survey; and 2.9% five years from now, up from 2.6%. The government’s latest consumer price index showed annual inflation at 2.7% for June, with the July figure slated for release Aug. 12.

The regional Fed’s latest report was released Aug. 7 but compiled before the latest import tariffs affecting more than 60 countries took effect on the same day. Several analysts have said those tariffs, ranging from 10% to 50%, could soon raise consumer prices on numerous items.