US oil and gas producer ConocoPhillips will cut between 20% and 25% of its workforce as part of a sweeping reorganization aimed at cutting costs and improving competitiveness, the company confirmed on Sep.3.
The Houston-based energy firm employs about 13,000 people worldwide, meaning between 2,600 and 3,250 jobs will be affected. Most of the reductions will occur before yearend, with the new corporate structure and leadership team to be announced in mid-September. The broader reorganization is expected to be completed by 2026.
The move comes amid weaker oil prices and rising costs that have squeezed profits across the industry. ConocoPhillips’ second-quarter net income fell to $2 billion, the lowest since early 2021 during the COVID-19 downturn. Chief executive officer Ryan Lance said costs have climbed by about $2/bbl in recent years, with controllable expenses rising to $13/bbl in 2024 from $11/bbl in 2021, eroding competitiveness.
In an internal video, Lance noted that as the company optimizes its organization and take work out of the system, fewer roles will be needed.
Oil, gas company layoffs
Other oil majors have also announced significant layoffs this year. Chevronsaid in February it would cut up to 20% of its staff, bp plc plans to reduce its workforce by more than 7,000 positions, and oilfield services giant SLB is trimming jobs as well.
In August, ConocoPhillips announced it expects to achieve more than $1 billion in cost cuts and margin improvements by the end of 2026, in addition to $1 billion in synergies it plans to achieve from its acquisition of Marathon Oil in 2024.
