What factors prompted ConocoPhillips to plan a 20%–25% reduction in its total workforce by the end of 2026?

At this point, I’m wide awake. Back in our graduation year (2009), ConocoPhillips was legendary—the dream employer. I couldn’t even squeeze into its campus recruitment presentation during junior year; ultimately, our college’s student union president landed the offer, instantly becoming our college’s walking ID badge—the first ever hired by a multinational corporation. Back to the topic at hand. ConocoPhillips plans to reduce its global workforce by 20%–25% by the end of 2026. This decision is not an isolated event but rather the result of a comprehensive assessment of global energy industry trends, the company’s financial condition, and its future strategic direction. The primary drivers behind this workforce reduction can be summarized as follows: 1. Responding to oil price volatility and controlling costs (short-term, direct cause) Anyone investing in gold and crude oil this year knows the situation well—extreme highs and lows. There’s even a news story about a young man who used his wedding fund to trade crude oil futures, only to lose it all—and his wedding. The persistent slump in oil prices is thus self-evident. Why has international oil price remained persistently low? No need to elaborate further (geopolitical tensions, global economic conditions, OPEC+ policies, etc.). As for why domestic refined fuel prices haven’t dropped much—well, that’s another realm of divine debate, best left aside for now. Labor costs are typically one of a company’s largest operating expenses. Workforce reductions directly lower operational costs and improve per-barrel profitability, thereby enhancing the company’s financial resilience and profitability during periods of depressed oil prices. 2. Redundant positions following mergers and acquisitions (the most immediate catalyst) Key events: In 2022, ConocoPhillips completed its acquisition of Shell’s U.S. Permian Basin assets; in 2023, it acquired Concho Resources, a major Permian Basin producer. Following large-scale M&A, significant functional and positional overlaps inevitably arise across identical departments—such as finance, human resources, geoscience exploration, and field operations—between the merging entities.

Three major responses by international oil majors amid low oil prices

International oil companies are adopting multiple measures to minimize the impact of cyclical low oil prices on their development. By Wang Nengquan Current international oil prices have fallen to around USD 60 per barrel. For different market participants, the situation can aptly be described as “some rejoice while others grieve.” As one of the key players in the international oil market, oil majors, to some extent, represent the current level and capability of the global petroleum industry. Faced with the continuously declining international oil prices since 2025, these oil majors have proactively adopted diverse countermeasures, revealing three major trends: 01 Accelerated layoffs In response to adverse market conditions, implementing measures—including layoffs—to weather the storm and ensure survival is standard practice worldwide, and globally renowned oil majors are no exception. Driven by industry consolidation, falling oil prices, and technological advancement, leading international oil & gas companies are accelerating layoffs and restructuring their workforces to achieve cost savings and improved efficiency. The latest oil major to announce thousands of job cuts is ExxonMobil. In early October, the company announced a global reduction of 2,000 jobs, nearly half of which will come from its Canadian subsidiary, Imperial Oil. Since acquiring Pioneer Natural Resources for USD 60 billion in May 2024, ExxonMobil has already cut approximately 400 positions in Texas. ExxonMobil is not the only company reducing indirect costs to enhance efficiency and save expenses. Chevron, which acquired Hess Corporation for USD 53 billion, stated that, as part of broad-based cost-cutting efforts, it will cut 20% of its workforce by the end of 2026—including 800 positions in the Permian Basin. ConocoPhillips acquired Marathon Oil in 2024 and plans to cut 25% of staff across functional departments and regions to streamline its organizational structure and reduce costs. BP, headquartered in the UK, faces immense shareholder pressure to cut costs and reduce debt. In August this year, the company announced it is accelerating the reduction of contractor numbers and office-based employees. BP has already reduced its number of contractors by 3,200 and expects another 1,200 contractors to exit by the end of 2025. Additionally, BP estimates that its ongoing organizational transformation will affect 6,200 positions out of its total 40,000 employees by the end of 2025. 02 Increasing oil and gas production Beyond passive measures like layoffs and streamlining, in response to oversupply in the international oil market since 2025, supermajors—following OPEC+’s lead—are also ramping up oil and gas output, aiming to actively confront low oil prices through superior operational efficiency and competitive strength. Entering 2025, the oil market remains oversupplied, and OPEC and its allies continue focusing on increasing supply. Amid weakening crude prices, the world’s largest oil companies are continuing to advance plans to accelerate production growth. According to analyst estimates compiled by Bloomberg, production by ExxonMobil, Chevron, Shell, BP, and TotalEnergies may increase by 3.9% in 2025 and by 4.7% in 2026. It may seem counterintuitive for supermajors to boost oil supply under such market conditions—but executives are looking ahead: crude supplies may not remain so abundant in the future.

ConocoPhillips to Reduce Workforce in Canada

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ConocoPhillips announced workforce reductions in Canada as part of restructuring following the Marathon Oil acquisition, though specific job numbers remain undisclosed.

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ConocoPhillips to Reduce Workforce in Canada

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