ConocoPhillips said it plans to lay off as much as a quarter of its global workforce, a move that could eliminate up to 3,250 jobs as the Houston-based oil giant seeks to rein in costs amid weakening earnings and declining crude prices.
A spokesperson confirmed Wednesday that between 20% and 25% of the company's 13,000 employees and contractors will be affected, with most reductions expected before the end of 2025. "We are always looking at how we can be more efficient with the resources we have," the spokesperson said in a statement.
Chief Executive Ryan Lance outlined the decision in a video message to staff, according to Reuters, saying, "As we streamline our organization and take work out of the system, we will need fewer roles." The announcement sent ConocoPhillips shares down 4.3% to just under $95 on Wednesday, leaving the stock nearly 14% lower over the past year.
The layoffs follow the launch of "Competitive Edge," a restructuring program backed by management consulting firm Boston Consulting Group. The initiative is intended to cut expenses and boost margins by at least $1 billion by 2026. ConocoPhillips said last month it had already identified significant savings through cost reductions and "margin optimization."
The company reported second-quarter earnings of $1.97 billion, beating Wall Street expectations but falling short of the $2.33 billion earned during the same period in 2024. ConocoPhillips also announced a $1.3 billion sale of its Anadarko Basin assets as part of the broader strategy.
Industry peers have also moved aggressively to trim staff this year. BP said in January it would cut more than 5% of its workforce and later raised the number to about 6,200 corporate jobs, or 15% of its office staff. Chevron disclosed plans in February to reduce its global workforce by 15% to 20%, citing efficiency gains.
ConocoPhillips executives have emphasized the restructuring is aimed at ensuring long-term competitiveness. "We are leveraging our scale and technologies to drive a further $1 billion-plus in companywide cost reductions and margin enhancements by the end of 2026," Lance said after the company's latest earnings. "These efforts strengthen our free cash flow generation, enabling us to continue delivering strong returns."
The cuts come as global oil markets struggle. Crude futures have fallen in 2025, pressuring producers despite policy wins under President Donald Trump's administration. Domestic drilling has slowed, and analysts say the weakness in the energy sector will add to concerns over the broader labor market.
ConocoPhillips said the majority of layoffs would occur within the next 15 months, though precise regional breakdowns were not disclosed.
