{"id":665,"date":"2025-09-03T20:35:08","date_gmt":"2025-09-03T20:35:08","guid":{"rendered":"https:\/\/readtrends.com\/en\/conocophillips-job-cuts-20-25\/"},"modified":"2025-09-03T20:35:08","modified_gmt":"2025-09-03T20:35:08","slug":"conocophillips-job-cuts-20-25","status":"publish","type":"post","link":"https:\/\/readtrends.com\/en\/conocophillips-job-cuts-20-25\/","title":{"rendered":"ConocoPhillips to Cut 20-25% of Workforce, Shares Fall"},"content":{"rendered":"<article>\n<p>Lead: On Sept. 3 in Houston, ConocoPhillips announced a plan to reduce its global headcount by roughly 20\u201325%\u2014about 2,600 to 3,250 roles\u2014part of a wider restructuring as shares fell about 4.5% to $94.55.<\/p>\n<h2>Key Takeaways<\/h2>\n<ul>\n<li>Company will cut 20\u201325% of its roughly 13,000 employees, affecting an estimated 2,600\u20133,250 positions.<\/li>\n<li>Most reductions are expected by year-end; reorganization to be completed by 2026.<\/li>\n<li>ConocoPhillips identified more than $1 billion in additional cost savings after earlier Marathon Oil synergies.<\/li>\n<li>CEO Ryan Lance cited rising controllable costs, now about $13 per barrel versus $11 in 2021.<\/li>\n<li>Shares fell ~4.5% on the announcement, reflecting pressure from lower oil prices this year.<\/li>\n<li>Management consulting firm Boston Consulting Group was reported to be advising on the program, internally called &#8220;Competitive Edge.&#8221;<\/li>\n<\/ul>\n<h2>Verified Facts<\/h2>\n<p>ConocoPhillips, the third-largest U.S. oil producer, said the workforce reduction will remove roughly one-fifth to one-quarter of roles from its current headcount of about 13,000 employees. Company spokespeople confirmed the 20\u201325% range and said most cuts will be executed before the end of 2025, with the full reorganization finished by 2026.<\/p>\n<p>The company reported second-quarter net income of about $2 billion, its weakest quarterly profit since March 2021. Management attributes margin pressure to an increase in controllable costs\u2014from $11 per barrel in 2021 to roughly $13 per barrel in 2024\u2014and to weaker benchmark U.S. crude prices, which have fallen about 11% year to date amid higher OPEC+ output.<\/p>\n<p>ConocoPhillips previously announced more than $1 billion in cost savings tied to its acquisition of Marathon Oil; leadership says it has now identified another $1 billion-plus of opportunities to trim expenses and improve margins. Sources familiar with internal plans say the company will disclose a new structure and management lineup in mid-September.<\/p>\n<h2>Context &amp; Impact<\/h2>\n<p>The move follows similar cuts across the sector as energy firms respond to subdued oil prices and rising costs. Chevron announced layoffs of up to 20% earlier this year, while other players including SLB and BP have also pared staff and curtailed spending.<\/p>\n<p>Analysts say the reductions aim to lower operating breakevens and preserve capital returns amid a tougher price environment. Short-term impacts may include reduced drilling activity, lower contractor demand, and regional variations in job losses depending on asset location.<\/p>\n<ul>\n<li>Market: Share reaction shows investor concern about near-term earnings and capital discipline.<\/li>\n<li>Operations: Early exits could slow project timelines and reduce in-field staffing.<\/li>\n<li>Supply chain: Service firms and suppliers may face lower orders if drilling and capex are curtailed further.<\/li>\n<\/ul>\n<h2>Official Statements<\/h2>\n<blockquote>\n<p>&#8220;I know these changes create uncertainty, and they are unsettling,&#8221;<\/p>\n<p><cite>Ryan Lance, CEO (video message)<\/cite><\/p><\/blockquote>\n<blockquote>\n<p>&#8220;Most job reductions will be made by year-end; the new organization will be announced in mid-September,&#8221;<\/p>\n<p><cite>Company spokesperson (email)<\/cite><\/p><\/blockquote>\n<aside>\n<details>\n<summary>Explainer: &#8220;Competitive Edge&#8221; and BCG<\/summary>\n<p>Internal reports identify the restructuring program as &#8220;Competitive Edge.&#8221; Sources say ConocoPhillips engaged Boston Consulting Group to advise on organization design and cost-out opportunities\u2014common practice when firms seek rapid operational change.<\/p>\n<\/details>\n<\/aside>\n<h2>Unconfirmed<\/h2>\n<ul>\n<li>Exact regional and business-unit breakdown of the cuts has not been disclosed.<\/li>\n<li>Details on severance packages, rehiring windows, or relocation offers remain unreported.<\/li>\n<li>Specific names and timing of new management roles will be revealed in the mid-September announcement and are not yet confirmed.<\/li>\n<\/ul>\n<h2>Bottom Line<\/h2>\n<p>ConocoPhillips&#8217; planned 20\u201325% workforce reduction underscores mounting pressure on oil majors from weaker crude prices and rising per-barrel costs. The cuts aim to protect margins and reposition the company for lower-price scenarios, but they carry near-term operational and market risks. Investors and industry stakeholders will watch the mid-September structural announcement and the town hall meeting scheduled for Thursday at 9 a.m. CT for more detail.<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.reuters.com\/markets\/commodities\/exclusive-conocophillips-says-it-will-cut-workforce-by-20-25-shares-fall-2025-09-03\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a><\/li>\n<li><a href=\"https:\/\/www.conocophillips.com\/news-media\/\" target=\"_blank\" rel=\"noopener\">ConocoPhillips newsroom<\/a><\/li>\n<\/ul>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>Lead: On Sept. 3 in Houston, ConocoPhillips announced a plan to reduce its global headcount by roughly 20\u201325%\u2014about 2,600 to 3,250 roles\u2014part of a wider restructuring as shares fell about 4.5% to $94.55. Key Takeaways Company will cut 20\u201325% of its roughly 13,000 employees, affecting an estimated 2,600\u20133,250 positions. Most reductions are expected by year-end; &#8230; <a title=\"ConocoPhillips to Cut 20-25% of Workforce, Shares Fall\" class=\"read-more\" href=\"https:\/\/readtrends.com\/en\/conocophillips-job-cuts-20-25\/\" aria-label=\"Read more about ConocoPhillips to Cut 20-25% of Workforce, Shares Fall\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"ConocoPhillips to Cut 20-25% of Workforce | NewsWire","rank_math_description":"ConocoPhillips will cut 20\u201325% of its roughly 13,000 workforce (2,600\u20133,250 roles) as it trims costs amid lower oil prices and rising per-barrel expenses; shares fell.","rank_math_focus_keyword":"ConocoPhillips, layoffs, workforce cuts, oil prices, restructuring, Ryan Lance","footnotes":""},"categories":[2],"tags":[],"class_list":["post-665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-stories"],"_links":{"self":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts\/665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/comments?post=665"}],"version-history":[{"count":0,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/posts\/665\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/media\/658"}],"wp:attachment":[{"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/media?parent=665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/categories?post=665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/readtrends.com\/en\/wp-json\/wp\/v2\/tags?post=665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}