ConocoPhillips, one of the largest oil and gas producers in the United States, has announced plans to lay off between 2,600 and 3,250 employees globally—accounting for 20% to 25% of its total workforce.
The move is part of a broader restructuring initiative aimed at improving operational efficiency and reducing costs in response to volatile market conditions and rising production expenses.
The company currently employs approximately 13,000 people worldwide.
Most of the job cuts are expected to be completed before the end of 2025, with internal restructuring continuing into 2026.
The announcement was made via a company-wide video message from CEO Ryan Lance, who acknowledged the uncertainty and discomfort the decision would cause but emphasized the need to streamline operations.
Rising Costs and Market Pressures Drive Layoffs at ConocoPhillips
ConocoPhillips cited rising operational costs and declining oil prices as key factors behind the layoffs.
According to CEO Lance, controllable costs have increased from $11 per barrel in 2021 to $13 per barrel in 2024—an 18% jump that has squeezed margins and prompted a reevaluation of staffing needs.
The company’s second-quarter net income fell to $2 billion, its lowest since the pandemic-induced downturn in 2021.
While this figure beat Wall Street expectations, it marked a notable decline from the $2.33 billion reported during the same period last year.
Shares of ConocoPhillips dropped by 4.7% following the announcement, trading below $95 and reflecting a 14% year-on-year decline.
Internal Program “Competitive Edge” Guides Restructuring
The layoffs are part of an internal restructuring program referred to as “Competitive Edge,” which aims to eliminate inefficiencies and optimize margins.
ConocoPhillips has reportedly identified over $1 billion in cost-saving opportunities, including the sale of its Anadarko Basin assets for $1.3 billion.
To support the restructuring, the company has engaged Boston Consulting Group to advise on organizational changes.
ConocoPhillips will announce a new management structure by mid-September and fully implement it by 2026.
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