Conoco Philipps
Conoco Philipps

ConocoPhillips will cut up to 3,250 jobs worldwide by the end of 2025, slashing 20% to 25% of its global workforce in a sweeping restructuring plan. The US oil and gas giant said the move is driven by falling crude prices, rising production costs and intensifying economic pressures that have eroded profitability.

Who Owns ConocoPhillips?

ConocoPhillips, one of the largest independent oil and gas exploration and production companies in the United States, is a publicly traded multinational headquartered in Houston, Texas.

It became a standalone upstream energy company in 2012 following the spin-off of its downstream arm into Phillips 66.

The company's ownership is distributed among institutional investors, mutual funds, hedge funds, and individual shareholders, meaning no single entity controls it outright.

Leadership is under CEO and Chairman Ryan Lance, who has held the role since 2012. Under his tenure, the company has pursued significant acquisitions, most notably the $22.5 billion (£16.65 billion) purchase of Marathon Oil earlier this year.

Thousands of Jobs to Go

ConocoPhillips currently employs around 13,000 people across its global operations.

The majority of the layoffs will be implemented by the end of 2025, with the restructuring due to be completed in 2026. The plan has been designed with input from Boston Consulting Group and is aimed at streamlining management layers, centralising operations, and cutting costs.

Why ConocoPhillips Is Cutting Jobs

The move comes as the company faces mounting cost pressures. Since 2021, unit production costs have risen from $11 to $13 per barrel, placing ConocoPhillips at a disadvantage compared with some of its competitors.

The energy giant has also been hit by a 12.5% decline in crude oil prices this year, driven by higher OPEC production levels and weaker demand growth. On top of this, elevated tariffs on steel and aluminium have pushed up infrastructure and project development costs, adding further strain to its balance sheet.

The Marathon Oil acquisition, while securing valuable assets, has also brought a need to consolidate and reduce overlap across operations, with the company targeting over $1 billion (£7.40 billion) in cost synergies.

CEO Response and Market Reaction

At a recent town hall meeting, CEO Ryan Lance accepted partial responsibility for the scale of the cuts, telling staff: 'I fault myself for not paying more attention to cost control earlier. We were too focused on acquisitions and not enough on operational efficiency.'

Investors reacted swiftly to the news, with ConocoPhillips shares falling by about 4% after the announcement. The drop reflected concerns over rising costs and uncertainty about the long-term impact of the restructuring on profitability.

Financial and Strategic Context

In the second quarter of 2025, ConocoPhillips reported net income of $1.97 billion (£1.45 billion), down from $2.33 billion (£1.72 billion) in the same period last year. The company has also agreed to sell its Anadarko Basin assets for $1.3 billion (£962.4 million) as part of a broader effort to sharpen its portfolio.

The integration of Marathon Oil remains a central priority, with leadership emphasising the importance of achieving cost efficiencies while positioning ConocoPhillips to remain competitive against global rivals such as Chevron, ExxonMobil, and BP.

Broader Energy Crisis Impact

The layoffs and restructuring highlight the ongoing volatility in global energy markets. Oil producers are contending with fluctuating demand, oversupply pressures, and the growing influence of renewable energy and climate policies.

Industry analysts note that ConocoPhillips' move is one of several restructuring efforts across the sector as companies adapt to changing energy dynamics and investor demands for leaner, more resilient operations.

Originally published on IBTimes UK