ConocoPhillips to Slash Up to 3,250 Jobs Amid Cost Pressures
The energy giant's major restructuring follows a sharp drop in quarterly profits as it seeks to improve efficiency.
ConocoPhillips announced a significant corporate restructuring that will slash up to a quarter of its global workforce, impacting as many as 3,250 employees and contractors. The move comes as the Houston-based energy producer grapples with rising costs and aims to improve its competitive standing in a volatile market.
In an internal video message to employees, CEO Ryan Lance stated that rising costs had left the company trailing its peers. The decision follows a period of financial pressure, as , its lowest level since the first quarter of 2021. The workforce reduction, affecting 20% to 25% of its 13,000 global staff, is part of a broader program advised by Boston Consulting Group, internally dubbed "Competitive Edge."
A company spokesperson confirmed the plans, stating that "we are always looking at how we can be more efficient with the resources we have." Most of the job cuts are expected to be finalized before the end of the year. The company plans to unveil its new organizational structure and management team in mid-September, with the full changes to be implemented by 2026.
The move is the latest in a series of workforce reductions sweeping the North American energy industry, mirroring recent . This trend reflects a sector-wide push to boost capital efficiency and reduce operational costs amidst market uncertainty. While the company has not detailed the geographic distribution of the cuts, its Canadian operations, headquartered in Calgary, employ approximately 950 people.