ConocoPhillips headquarters in Houston. The company will cut 20-25% of its personnel, according to Reuters.
U.S. oil and gas giant ConocoPhillips revealed that it plans to slash 20–25% of its global workforce as part of a sweeping restructuring initiative aimed at trimming costs and improving competitiveness, according to Reuters. With a workforce of roughly 13,000 employees, this translates into layoffs affecting an estimated 2,600 to 3,250 positions—most of which are expected to be eliminated before year-end.
CEO Ryan Lance outlined the rationale in an internal video message, citing a discrepancy of about $2 per barrel in controllable production costs compared to rivals; these costs have climbed from $11 in 2021 to $13 in 2024. The restructuring effort, internally dubbed “Competitive Edge,” is being guided by management consultants from the Boston Consulting Group, with full implementation slated by 2026 and new management layers unveiled by mid-September.
Following the announcement, ConocoPhillips shares dropped 3.9%, reflecting investor concerns over rising costs and the expected impact of the workforce reduction. The company plans to hold an all-staff town hall meeting to discuss the changes further.
ConocoPhillips joins peers such as Chevron and SLB in implementing significant cutbacks this year amid mounting cost pressures across the energy sector. Just last month, the company revealed over $1 billion in additional cost- and margin-enhancement opportunities, which augment savings already realized through its Marathon Oil acquisition. Net income for the second quarter fell to about $2 billion, marking the lowest profit level since early 2021, according to Reuters.
This report is based on exclusive coverage by Reuters.
