HOUSTON (Realist English). ConocoPhillips announced plans to reduce its global workforce by 20–25% — equivalent to 2,600–3,250 jobs — by the end of 2026, as the US oil and gas group responds to weaker crude prices and seeks to deliver on its cost-cutting strategy.
The company said the majority of layoffs, which will affect both full-time employees and contractors, will occur in 2025. “We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that a 20 to 25 per cent reduction in our global workforce, which includes employees and contractors, is anticipated,” ConocoPhillips said in a statement.
The move follows a 12.5% decline in West Texas Intermediate crude prices since the start of 2025, which has prompted a wave of restructuring across the oil and gas sector. Chevron announced in February that it would cut one-fifth of its staff, while BP last month said it would trim at least 15% of its 40,000 office workforce.
Industry analysts say the layoffs reflect an adjustment after record profits in 2022–2023, when Russia’s full-scale invasion of Ukraine drove energy prices sharply higher. Oil majors are now seeking to consolidate operations and preserve shareholder payouts amid lower revenues, following an estimated $300bn wave of mergers and acquisitions in the sector over 2023–2024.
ConocoPhillips last November closed its $22.5bn acquisition of Marathon Oil, forecasting $1bn in annual synergies within a year. Chief executive Ryan Lance told investors last month that additional savings of about $1bn had been identified, citing “workforce centralisation” and lessons from recent transactions.
“We are going to be implementing [these measures] globally throughout the company,” Lance said, underscoring management’s focus on margin enhancement and capital discipline.
