Oil giant ConocoPhillips has confirmed plans to lay off between 2,600 and 3,250 employees globally, accounting for 20% to 25% of its workforce.
This announcement comes as the company faces pressure from falling oil prices and aims to streamline operations. According to a spokesperson, most of the cuts will occur before the year end.
CEO Ryan Lance addressed the layoffs in a company-wide video message. He addressed the uncertainty and discomfort the changes would bring.
He explained that, as the company works to reduce inefficiencies, fewer roles will be necessary. “We are always looking at how we can be more efficient with the resources we have,” Lance said.
ConocoPhillips’ decision follows a trend in the oil and energy sector, where companies have been forced to cut staff and reduce costs due to declining oil prices.
Chevron previously announced similar layoffs in February, as other major companies like SLB and BP are also reducing their workforces.
“We are always looking at how we can be more efficient with the resources we have,” a ConocoPhillips’ spokesperson said via email, adding that the company expects the “majority of these reductions” to take place before the end of 2025.
ConocoPhillips’ net income for the second quarter plummeted to $2 billion, marking its lowest since the pandemic-induced downturn in 2021. Shares have fallen by 4.7% this year, reflecting the company’s struggles in the current economic climate.
While ConocoPhillips adjusts to market conditions, it is not the only company to announce major layoffs this year. The tech sector, in particular, has seen substantial job cuts, with Google slashing 35% of its workforce and other companies like Scale AI and Intel following suit. Accenture is also restructuring, though the full impact on staffing remains unclear.