Dive Brief:
- ConocoPhillips expects to cut between 20% and 25% of its global workforce, including contractors, a company spokesperson confirmed to C-Store Dive.
- The majority of these cuts, which were first reported by Reuters, are expected to take place by the end of the year, the spokesperson said. The energy company had about 11,800 employees in 14 countries at the end of 2024, according to its annual report.
- This comes after news earlier this year that Chevron is slashing 20% of its global workforce. BP said in January it would cut 5% of its global workforce and later shared that layoffs would be higher in some departments.
Dive Insight:
ConocoPhillips’ headcount reduction comes as oil prices remain lower than in the past couple years, which may be pushing the company to streamline operations.
“We are always looking at how we can be more efficient with the resources we have,” ConocoPhillips said in a statement. “As part of this process, we have informed employees that a 20% to 25% reduction in our global workforce, which includes employees and contractors, is anticipated.”
The average crude price in May was the lowest the U.S. had seen in four years, according to data from the U.S. Energy Information Administration. Additionally, about three quarters of oil company leaders in the Dallas Federal Reserve’s second-quarter energy survey noted that tariffs were driving production costs for new wells higher.
ConocoPhillips also recently finished integrating Marathon Oil, which it agreed to acquire in 2024 for over $22 billion. The acquisition was expected to add 2 billion barrels to ConocoPhillips’ production.
