ConocoPhillips announced on Sept. 4, 2025 that it will reduce 20–25% of its roughly 13,000 global employees in a broad restructuring, a move CEO Ryan Lance outlined in a company video that coincided with a sharp drop in the company’s shares.
Key Takeaways
- ConocoPhillips plans to cut 20–25% of its workforce, affecting about 2,600–3,250 employees.
- Shares fell about 4.5% on the announcement, trading near $94.55; the stock is down roughly 4.7% year‑to‑date.
- Leadership cited rising controllable costs — about $13 per barrel in 2024 versus $11 in 2021 — and weaker oil prices as drivers.
- Most job reductions are expected by year‑end; the new structure will be disclosed mid‑September and the reorganization completed by 2026.
- ConocoPhillips identified more than $1 billion in additional cost savings on top of roughly $1 billion from last year’s Marathon Oil acquisition.
- Management has engaged Boston Consulting Group on the program, internally called “Competitive Edge.”
- Industry peers, including Chevron, SLB and BP, have announced or implemented cuts as producers respond to lower crude prices.
Verified Facts
ConocoPhillips employs about 13,000 people worldwide. A 20–25% reduction implies between 2,600 and 3,250 roles will be eliminated, the company told reporters and spokespeople. The firm said most of the reductions will occur before the end of 2025.
The company’s shares fell approximately 4.5% on the day of the announcement to $94.55, a move that outpaced a broader S&P 500 Energy Index decline. Year‑to‑date the stock was down roughly 4.7% compared with a modest gain for the sector index.
| Metric | Reported Value |
|---|---|
| Total employees | ~13,000 |
| Projected reductions | 2,600–3,250 (20–25%) |
| Controllable costs | $13/ barrel (2024) vs $11/ barrel (2021) |
Net income fell to about $2 billion in the second quarter — the lowest quarterly profit since Q1 2021 — a decline executives attribute to weaker commodity prices and rising per‑barrel costs.
Context & Impact
Global benchmark U.S. crude futures have traded about 11% lower year‑to‑date amid higher OPEC+ output and competition for market share, pressuring U.S. producers’ margins and prompting cost reduction programs across the industry.
ConocoPhillips joins several majors that have cut or pared staffing and spending this year. Chevron earlier signaled potential workforce cuts of up to 20% in February, while equipment and services firms such as SLB and international producers like BP have also trimmed roles or spending.
Management projects the reorganization will be phased: a new leadership and operating structure will be announced in mid‑September, with implementation continuing through 2026. The company is holding a town hall for employees on Thursday at 9 a.m. Central Time to discuss details.
“I know these changes create uncertainty, and they are unsettling,”
Ryan Lance, CEO
Unconfirmed
- Precise list of business units or regions where layoffs will be concentrated has not been publicly released.
- Details on severance packages, rehiring windows, or exact headcount timing beyond the year‑end target remain unspecified.
Bottom Line
ConocoPhillips is moving to shrink its workforce and restructure operations to cut costs after weaker oil prices and rising controllable costs squeezed margins. The steps mirror industrywide retrenchment and are intended to preserve cash flow and competitiveness, but will likely weigh on near‑term employee morale and local economies where cuts are concentrated.