ConocoPhillips, a major player in the oil and gas industry, announced plans to reduce its global workforce by a substantial margin. The company confirmed that between 20% and 25% of its employees and contractors will be laid off. This translates to a loss of between 2,600 and 3,250 jobs worldwide, given the company’s current headcount of approximately 13,000.
A company spokesperson explained that these reductions are part of a broader initiative to improve efficiency and manage costs. The majority of these job cuts are expected to be completed before the end of 2025. The news followed a report by Reuters, citing an internal video message from CEO Ryan Lance outlining the plan. Lance reportedly emphasized the need for a smaller workforce in response to rising operational expenses.
The announcement resulted in a 4.3% drop in ConocoPhillips‘ share price on Wednesday. The company’s stock is currently trading below $95 per share, representing a nearly 14% decrease from a year ago. This decline reflects investor concerns about the impact of the layoffs on the company’s future performance.
Despite the layoffs, ConocoPhillips recently reported strong second-quarter earnings of $1.97 billion, exceeding Wall Street projections. However, this figure was still lower than the nearly $2.33 billion reported for the same period in the previous year. The company has consistently highlighted its commitment to cost-cutting measures, previously announcing the identification of over $1 billion in potential cost reductions and margin improvements. Further demonstrating this commitment, ConocoPhillips also finalized the sale of its Anadarko Basin assets for $1.3 billion.
The upcoming layoffs represent a significant restructuring for ConocoPhillips. The company’s actions underscore the challenges faced by energy companies navigating fluctuating market conditions and the need for ongoing operational efficiency. The long-term effects of these job cuts on both the company and its employees remain to be seen. The impact on the communities where ConocoPhillips operates will also need to be considered.
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