London-based oil major BP has promoted a 35-year veteran of its upstream business to deputize for chief executive Bob Dudley as annual profits more than halve.

In the newly created role of deputy group chief executive, Lamar McKay will take over some of Dudley’s duties as well as adding responsibilities for strategy and long-term planning, safety and operational risk, technology and corporate governance. BP America will continue to report to him.

McKay will be replaced as CEO of BP’s upstream segment by Bernard Looney, who is currently chief operating officer of the upstream division.

Dudley said the leadership changes would simplify, focus and better align accountabilities within the senior team. He commented: “In particular, Lamar’s new role will allow us to further concentrate our attention on BP’s highest priorities through this challenging time for our whole industry.

In addition, Katrina Landis, executive vice president of corporate business activities will retire on May 1, after 24 years with BP. She will not be replaced on the executive team and her responsibilities will be assigned to other members.

The reshuffle comes just as the group announced annual profits for 2015 had fallen by 51% to $5.9 billion, following the dramatic slide in oil prices. The fall was much worse than analysts had feared. Profits in 2014 were $12.1 billion.

BP also announced a further 3,000 downstream job cuts by the end of 2017. Earlier last month, the group said it was losing 4,000 jobs in its upstream division as part of a restructuring program.