Efficiency is the name of the game, and job cuts appear to be the way to win it. This time, the announcement of ConocoPhillips layoffs has shaken up the oil industry. Conoco’s workforce downsizing efforts will affect 20-25% of the company’s workers as the business gets started on looking at how it can be “more efficient with the resources” it has. CEO Ryan Lance reportedly announced the layoffs at the oil company in a video message to employees.
The oil giant isn’t alone in its downsizing ambitions, as competitors have also ramped up cuts within their workforce following a fall in oil prices and confusion within the regulatory landscape. As ConocoPhillips’ global layoffs take shape, we’re left to wonder if 2025 will truly be one of the worst periods of career growth for employees.
The ConocoPhillips layoffs bring up many important questions, from breaking down the real cost of acquisitions to the state of oil industry workers. (Image: Pexels)
ConocoPhillips Layoffs Announced: A Quarter of the Workforce Set to Make an Exit
The Conoco job cuts announced today aim to bring down the company’s headcount by 20-25%, marking a significant drop in its numbers. Reports suggest that the company currently employs 13,000 workers globally, which indicates that the cuts could affect around 2,600 to 3,250 employees, which is quite a considerable number.
The business is on a mission to cut costs, curb spending, and realign its production with the scale of demand for its services. The CEO indicated that the costs had risen to $13 per barrel in 2024, from $11 in 2021. While the difference appears manageable at first glance, this marks an 18% increase with expectations of costs rising further. “As we streamline our organization and take work out of the system, we will need fewer roles,” CEO Lance was confirmed to have said, according to Reuters.
The ConocoPhillips layoffs are only part of the strategy to cut costs. The company has reportedly identified avenues for over $1 billion in cost reductions and margin optimizations, according to APNews. This also comes with the confirmed sale of the business’ Anadarko Basin assets for $1.3 billion.
The Impact of the Conoco Layoffs Will Be Considerable on Employees
From the reports on Conoco’s staff reduction plans, it appears that the majority of these reductions will take place shortly, before the end of 2025. This abrupt downsizing of the business is expected to cause considerable disruption for the remaining employees, who will have to scramble to keep the business functional.
The CEO did not indicate whether ConocoPhillips’s global layoffs would target any particular sector or business wing, but internal discussions may have already begun on which employees will be eliminated.
Big Purchases, Small Rewards
The news of ConocoPhillips layoffs comes nearly a year after the company acquired Marathon Oil. Many big businesses have rushed to swallow up smaller ones to cut down competition and increase their own production, but managing large-scale production is not always easy, particularly when demand tends to fluctuate. Much like with the separation of the Heinz-Kraft businesses reported recently, many firms are coming to make considerable changes following their mergers and acquisitions.
While there is no evidence to suggest that the Conoco job cuts are a direct result of the acquisition, frequently, employees are left to bear the brunt of layoffs following such business dealings made at the top. No information has been made public regarding the severance packages being offered to employees, but rare is the deal that can fairly compensate for the lack of job security.
Layoffs at Oil Companies Continue, Leaving Workers in Despair
The oil and energy industry as a whole has witnessed considerable disruption this year. Layoffs at oil company Chevron were announced earlier this year, with 20% of the workforce targeted by the cuts. More recently, SLB and BP also announced cuts in their numbers.
“I know these changes create uncertainty, and they are unsettling,” the CEO of ConocoPhillips was heard saying in the video, and it’s true. In 2025, the workforce is plagued with considerable uncertainty regarding their careers, and this is applicable across industries. Whether due to economic challenges or the arrival of advanced technology in the form of robotics and AI, employees are left worried about their positions growing redundant at a time when economic challenges affect them just as severely.
Employee support programs and advanced benefits are one way to set the restless workforce at ease, but with businesses focused on cutting costs, these missions appear to have taken a backseat. It may be up to HR teams to bring them back into the limelight, improving the support systems made available to workers to help in retention and continued productivity during these uncertain times.
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