Houston-based ConocoPhillips plans to lay off up to a quarter of its workforce as part of a broad restructuring effort by the oil and gas giant.
The company confirmed to various outlets including USA Today that it would be cutting between 20 and 25 percent of its staff. ConocoPhillips had around 12,000 employees at the end of last year according to its own estimates, and currently employs a total of roughly 13,000 globally, according to Reuters, meaning as many as 3,250 roles could be impacted by the decision.
“As we streamline our organization and take work out of the system, we will need fewer roles,” CEO Ryan Lance said in a video message to employees and heard by Reuters.
Newsweek has contacted ConocoPhillips via email and through its website for further comment.
Why It Matters
ConocoPhillips is one of the largest oil and gas companies in the U.S, behind only Exxon Mobil and Chevron in terms of market capitalization. Its announcement follows similar plans being revealed by other major energy firms, despite the policy wins the sector has racked up during President Donald Trump‘s second term, and comes as oil prices continue their downward trend in 2025 and domestic drilling itself stalls.
What To Know
The layoffs follow the rollout of the company’s cost-cutting and restructuring initiative earlier this year. Dubbed “Competitive Edge,” Reuters reported that ConocoPhillips had hired management consulting firm Boston Consulting Group to advise on the program, which would involve job cuts and other efforts aimed at improving margins.
Last month, after reporting a decline in earnings for the second quarter, the company said it had identified “cost reductions and margin enhancements” that could save it around $1 billion by the end of 2026.
According to Reuters, as well as the broader efficiency push, the company’s CEO cited escalating expenses as a key factor behind the decision to cut jobs.
A number of companies have announced similar plans this year amid an ongoing decline in oil prices and crude oil futures.
In January, British oil giant BP revealed plans to cut more than five percent of its total workforce. In August, the company revised these figures upward, announcing that around 6,200 corporate positions, or 15 percent of its office-based staff, would be cut.
In February, Houston-based Chevron said it would be trimming its global workforce by 15 to 20 percent, a change Vice Chairman Mark Nelson said would “improve standardization, centralization, efficiency and results,” Forbes reported.
What People Are Saying
ConocoPhillips CEO Ryan Lance, following the company’s second quarter results, said: “We are leveraging our scale and technologies to drive a further $1 billion-plus in companywide cost reductions and margin enhancements by the end of 2026. These efforts strengthen our free cash flow generation, enabling us to continue delivering strong returns on and of capital.”
A spokesperson for ConocoPhillips told CBS News: “We are always looking at how we can be more efficient with the resources we have.”
What Happens Next?
ConocoPhillips told The Associated Press that it expects the “majority of these reductions” to occur before the end of 2025.
Energy is just one of several sectors in the U.S. facing job cuts, layoffs and hiring freezes this year. The weaknesses seen in oil and gas will factor into the broader labor market outlook, already a cause for concern following recent reports from various government agencies and research organizations.
Analysts and policymakers will be closely watching the Bureau of Labor Statistics’ nonfarm payrolls report on Friday morning for additional signals of softness in the labor market.
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