ConocoPhillips to slash workforce by up to 25% amid cost pressures

ConocoPhillips is implementing a reorganization, reducing its workforce by 20-25% to cut costs amid declining oil prices and rising expenses, with most layoffs occurring before yearend.
by Conglin Xu

Key Highlights
(1) ConocoPhillips plans to cut 2,600-3,250 jobs due to cost pressures, primarily before end-2025.

(2) The energy company aims to complete its reorganization and announce new leadership by mid-September, with full implementation by 2026.

(3) Similar layoffs are occurring industry-wide, with Chevron, BP, and SLB also reducing headcounts.

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.

https://www.ogj.com/general-interest/personnel-moves-promotions/news/

#Layoffs #OilAndGas #Reorg #Acquisition

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19 replies (most recent on top)

@q0+1k48m0y08

You must also remember that we hired 3000 people in India Bangaluru Technology Center and we continue staffing up in Buenos Aires, Curitiba-Brazil, and Prague/Budapest so we PIP'd/NSI'd more than 3%.

No need to bring foreigners to the USA on visas with all this talent looking for a job! Send all the visa holders home and hire local citizens.

XOM had over 74900 employees in 2019 (before covid) and at 61000 at end of 2024. This is not cutting 8% per year. it is less than 3% per year. XOM needs to increase the rate to over 5% (cut about 3k employees per year) to get to below 45k employees by 2030. about 5 big affiliate sales should do the trick. Start with selling Mal & Aus bass strait upstream, Fife, EU chem & German affiliate. By 2030-35, sell Angola, Nigeria Deepwater and West Canada offshore assets (these will be over 40 years old by then). By 2035 to 2040, Qatar LNG license terms will have expired. US headcount needs to cut below 15000 (mostly in Houston).

Didn’t they buy someone not long ago. These over in the XOM world is redundancies being let go.

@e8 Classic!

@e4 what’s the difference between a bathroom and LCS? The bathroom has a purpose

@e4 to-ser

@e5+1k48m0y08

College graduates are running away. Electrical Engineering and Computer Science B.S. degrees are growing exponentially. Petroleum and Chemical Engineering are holding their own, but are not growing at Universities.

This is not good for any of us in the industry. Young people should be running away from oil and gas as fast as they can.

Can’t be LCS because it is staffed with all the HIPOS like me. We even have a special relaxed and biased up distribution for assessments.

@dn I’ve heard Low & GP

@cv Up, Down, Low, Tech? US vs. them?

No worries su*kers, XOM has been already cutting 8% every year through the PIP program, that way they don't have to do 25% right away. If you think about it, PIP is much more effective than rough 25%, coz it's accumulative base instead of one heavy hit..

@c6 depends, not across the board. Remember in Covid, some groups were not impacted

@a5 what’s the time frame? I’m thinking if I should stay for another PIP next year or give up the wait

https://www.ogj.com/general-interest/personnel-moves-promotions/news/55314048/conocophillips-conocophillips-to-slash-workforce-by-up-to-25-amid-cost-pressures

lay of research employees, pretty useless. no offense go ise your phDs to do work where you are valued.

Be thankful you have a job to complain about.

layoffs coming at EM, can’t share details yet

Thread regarding ExxonMobil Corp. layoffs

ConocoPhillips to slash workforce by up to 25% amid cost pressures

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