ConocoPhillips to Cut Up to 25% of Workforce as Oil Price Slump Bites

U.S. oil major ConocoPhillips confirmed on September 3 that it will lay off as much as 25% of its global workforce, a move that could affect more than 3,000 employees worldwide. 

The company said between 20% and 25% of employees and contractors will be cut from its roughly 13,000-strong global workforce, implying 2,600–3,250 job losses. A spokesperson told Reuters by email: “We are continually seeking ways to more effectively deploy our resources,” adding that most of the layoffs are expected to be completed by the end of 2025.

The decision underscores the mounting pressure on oil companies as international crude prices continue to slide, eroding profits and forcing producers to turn to aggressive cost-cutting. Layoffs have once again become the go-to lever for efficiency.

ConocoPhillips’ latest earnings report, released on August 7, showed Q2 net profit plunging to about $2 billion, the lowest since early 2021. Alongside the layoffs, the company has identified over $1 billion in cost reductions and margin optimization measures, and agreed to sell its Anadarko Basin assets for $1.3 billion.

The cuts put ConocoPhillips in line with its peers. Earlier this year, BP confirmed it would shed 4,700 staff plus 3,000 contractor roles, while Chevron announced plans to reduce its workforce by 15–20%—impacting up to 9,000 jobs—as part of streamlining efforts tied to major acquisitions. Oilfield services giant SLB (Schlumberger) has also trimmed headcount.

The Bigger Picture

The oil sector is in the grip of margin compression, squeezed between weakening crude benchmarks, investor pressure for returns, and growing competition from low-cost producers. For ConocoPhillips, one of the largest independent oil companies in the world, the sweeping layoffs represent both a defensive move and a signal to investors that management is willing to act decisively.

In essence, ConocoPhillips’ decision highlights a broader industry reality: Big Oil is shrinking its workforce in order to survive a new era of volatile prices, structural cost pressure, and heightened scrutiny from shareholders.