ConocoPhillips, a leading US oil and gas producer, has announced plans to reduce its workforce as part of a broader initiative to cut costs and streamline operations following the company’s $23bn acquisition of Marathon Oil, reported Reuters, citing sources.
The oil and gas sector is currently grappling with financial challenges as companies struggle to maintain profitability with oil prices around $63 per barrel.
The planned layoffs at ConocoPhillips reflect wider industry trends, with other oil giants such as Chevron and SLB also announcing job cuts earlier this year.
To guide its restructuring, ConocoPhillips has enlisted the services of Boston Consulting Group, the report said.
The internal project, dubbed ‘Competitive Edge’, aims to centralise certain functions and reorganise both operational and corporate sectors.
“We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that workforce reductions are anticipated,” a ConocoPhillips spokesperson was quoted as saying.
The specifics of the layoffs are expected to be disclosed in the fourth quarter (Q4), with the company yet to determine the extent of the staff reductions.
As of the end of 2024, ConocoPhillips employed approximately 11,800 individuals across 14 countries.
The company has grown significantly through major acquisitions including the purchase of Marathon Oil, Shell’s Permian Basin assets and Concho Resources.
However, the industry has faced difficulties, with ConocoPhillips previously laying off up to 500 Houston employees in 2020 due to the Covid pandemic’s impact on energy demand and prices.
In addition to the restructuring, ConocoPhillips is reportedly looking to divest some assets including oil and gas holdings in Oklahoma acquired from Marathon Oil.
These moves are part of the company’s strategy to optimise its portfolio and focus on core areas of business.
