Houston-based oil company ConocoPhillips announced on Wednesday plans to reduce up to 25% of its global workforce, which could affect 2,600 to 3,250 employees and contractors, as part of a major cost-cutting restructuring effort. The company, employing approximately 13,000 people globally, anticipates most layoffs to occur before the end of 2025.
CEO Ryan Lance communicated the plan in a video to employees, explaining that increased production costs—now at $13 per barrel, up from $11 in 2021—have put the company at a competitive disadvantage. The restructuring initiative, called Competitive Edge and developed with Boston Consulting Group, is set to continue through 2026, with a new management structure expected by mid-September.
Lance stated, “As we streamline our organization and eliminate inefficiencies, we will need fewer roles,” as reported by Reuters.
Post-announcement, ConocoPhillips observed a nearly 4% drop in its stock price. The company has identified over $1 billion in potential cost and margin improvements, leveraging savings from its acquisition of Marathon Oil and other cost-cutting measures.
The former Marathon Oil headquarters was sold following the mega-merger with ConocoPhillips, signifying the end of an era for one of Houston’s notable energy companies.
Earlier in January, ConocoPhillips announced plans to eliminate over 7,000 positions, representing 5% of its workforce.
