ConocoPhillips to cut up to 25% of workforce amid rising costs

In July 2025, ConocoPhillips, a major oil company based in Houston, announced significant workforce reductions as part of its strategy to manage rising operational costs. The company's spokesperson confirmed plans to lay off between 20% and 25% of its employees and contractors, which is projected to affect approximately 2,600 to 3,250 individuals globally, given their total headcount of about 13,000. This decision comes at a time when ConocoPhillips is striving to enhance efficiency and reduce costs across its organization. The layoffs, confirmed via an internal video message from CEO Ryan Lance, are part of a broader effort to optimize the company's finances. Despite reporting impressive second-quarter earnings of $1.97 billion, which exceeded Wall Street's expectations, ConocoPhillips noted a decline compared to the previous year’s $2.33 billion earnings. This signals that while the company is still profitable, it faces challenges in maintaining its financial performance in the current economic climate characterized by elevated costs and market uncertainty. In an effort to drill down further on cost-saving measures, ConocoPhillips reported it had identified over $1 billion in potential reductions and margin optimization strategies. The company has also undertaken significant asset disposal initiatives, like selling its Anadarko Basin assets for $1.3 billion. Such measures reflect an urgent response to the evolving market demands and a necessity to streamline operations amid increasing expenses on the part of the company. As the restructuring plan unfolds, the company anticipates that the majority of these reductions will occur before the end of 2025. The immediate impact of the layoffs has already been felt in the stock market, where shares of ConocoPhillips dropped by 4.3%, falling beneath the $95 per share mark. This decline represents a nearly 14% decrease from a year prior, highlighting investor concern over the company’s strategic direction and the potential long-term implications of these workforce reductions.