The American oil and gas company, ConocoPhillips, has announced massive layoffs that could affect 25% of its workforce, in an attempt to carry out a business restructuring and reduce costs. The U.S. oil industry, led by Exxon Mobil, Chevron and ConocoPhillips, is going through a delicate moment despite the political victories that the sector has achieved with Donald Trump’s second term. Despite this, oil prices continue to fall, and domestic drilling has stalled.
This employment crisis in the U.S. not only affects American companies but also crosses the sea to the United Kingdom, where the oil giant BP also announced its plans to cut about 5% of its workforce. In the case of ConocoPhillips, the decision was made after hiring Boston Consulting Group, a management consulting firm, which stated that job cuts would improve the company’s margins. Ryan Lance, the CEO of the Houston, Texas-based company, stated that the intention is to save more than $1 billion before the end of the year 2026 with these new measures.
ConocoPhillips
Based in Houston, Texas, it is a multinational independent American company engaged in the exploration and production of oil and natural gas. It was created in 2002 as a result of the merger between Conoco Inc. and Phillips Petroleum. Its main objective is the exploration, extraction, transportation, and marketing of hydrocarbons such as crude oil, asphalt, natural gas, and liquefied natural gas, all on a global level. It operates in various countries beyond the borders of the United States, such as Canada, Australia, Norway, Asia, and other regions.
What is happening with ConocoPhillips?
A spokesman for the company stated to Newsweek the intention to carry out massive layoffs that will affect between 20% and 25% of the staff, including employees and contractors. According to Reuters, at the end of 2024, ConocoPhillips had more than 12,000 employees, compared to the 13,000 it has now worldwide. As Ryan Lance, the CEO of the company, stated, ‘As we streamline our organization and eliminate work from the system, we will need fewer roles”.
To reach this decision, the company utilized the services of Boston Consulting Group, a management consulting firm that determined the need to cut jobs and make other efforts to improve the margins the company is obtaining. Newsweek reported the statement from one of the company’s spokespeople, “We are always looking for ways to be more efficient with the resources we have. As part of this process, we have informed employees that a reduction of 20% to 25% in our global workforce, which includes employees and contractors, is expected”.
Oil industry in the United States in jeopardy
The main companies leading the oil and gas market in the United States are Exxon Mobil, Chevron, and ConocoPhillips. However, the pattern of the latter is being replicated by all companies, despite having achieved more than one or two victories during Trump’s second term. The reality is that oil prices continue to drop and domestic drilling has stagnated, which is generating a crisis in the sector. This situation not only affects the United States, but also extends to the United Kingdom, where the largest oil company, BP, has announced plans to implement cuts that will affect 15% of its workforce.
What is ConocoPhillips’ position?
According to its CEO, “We are leveraging our scale and technologies to drive more than $1 billion in cost reductions and margin improvements across the company by the end of 2026. These efforts strengthen our free cash flow generation, allowing us to continue delivering strong returns on and of capital.” All these new reductions and layoffs have a deadline, as the company expects them to occur before the end of 2025.
