ConocoPhillips announces it will reduce its workforce by 20-25%. Shares fall

A spokesperson for ConocoPhillips, an American oil and gas company, said that the company will be cutting 20-25% from its workforce as part of a wider restructuring program.

Shares of the firm fell 4.7% to $94.

Four ConocoPhillips source confirmed that employees received an email containing a video from CEO Ryan Lance outlining the plans. Sources said that the company will hold a town-hall meeting at 9 am Central Time on Thursday.

ConocoPhillips employs approximately 13,000 people worldwide, which means that between 2,600 to 3,250 workers will be affected. ConocoPhillips spokesperson Dennis Nuss stated in an email response that the majority of the cuts would be made by the end of this year.

Two sources have said that the new structure and management plan will be made public by mid-September and will be implemented in 2026.

SLB, a service company and oil major Chevron both announced layoffs in the first half of this year.

Two sources reported in April that Houston-based ConocoPhillips hired Boston Consulting Group as a management consulting firm to provide advice on a restructuring and layoffs program internally referred to as "Competitive Edge."

ConocoPhillips saw its net income fall in the second quarter, to around $2 billion. This is the lowest level since March 2021 when COVID-19 ravaged the demand. In May, the company warned about uncertainty and volatility on the market and said it was working to improve capital efficiency and cut costs throughout the organization. Reporting by Georgina Mcartney in Houston, Arathy Sommesekhar in New York, and Ernest Scheyder and Shariq Khan from Houston; editing by Nathan Crooks, David Gregorio, and Nathan Crooks

(source: Reuters)