ConocoPhillips, one of the leading players in the global oil industry, has revealed plans to lay off up to 25% of its workforce as part of a strategic effort to reduce costs and improve operational efficiency. The company, headquartered in Houston, confirmed that roughly 20% to 25% of its approximately 13,000 employees and contractors worldwide will be affected by the layoffs, translating to between 2,600 and 3,250 job cuts.
A company spokesperson emphasized that these measures are driven by a need to optimize resources, with the majority of reductions expected to be completed before the end of 2025. The announcement comes at a time when the energy giant is navigating fluctuating oil prices and mounting operational expenses.
The news was first reported by Reuters, citing anonymous sources who indicated that CEO Ryan Lance communicated the plan via a video message earlier this week. In that message, Lance reportedly highlighted the necessity of reducing workforce roles to counter rising costs and enhance efficiency.
ConocoPhillips’ stock responded negatively to the announcement, declining by 4.3% on Wednesday and currently trading below $95 per share. This marks a significant decrease from the company’s stock value a year ago, which was roughly 14% higher.
Financially, ConocoPhillips reported a second-quarter profit of $1.97 billion, surpassing Wall Street expectations but falling short of the nearly $2.33 billion profit posted during the same period last year. The company’s recent earnings report, released on August 7, also highlighted ongoing cost reduction initiatives, including the identification of over $1 billion in savings and efforts to optimize profit margins. Additionally, ConocoPhillips announced the sale of its Anadarko Basin assets for $1.3 billion, reflecting its focus on streamlining operations.
This move signals a broader shift within the industry, where companies are increasingly adopting aggressive cost-cutting strategies to remain competitive amid uncertain market conditions. The layoffs are likely to have a ripple effect across the energy sector, impacting regional economies and workforce stability.
As the company works through these changes, analysts will be closely watching how these cuts influence ConocoPhillips’ long-term financial health and operational agility.