ConocoPhillips says it will lay off up to 25% of its workforce, impacting thousands of jobs

Key Points

• ConocoPhillips plans to lay off up to 25% of its workforce, which equates to 2,600 to 3,250 workers, to cut costs.
• The layoffs are expected to take place before the end of 2025, as the company continues to seek efficiency improvements.
• ConocoPhillips' stock fell more than 4% following the announcement and is down nearly 11% from the previous year.
• The company reported earnings of $1.97 billion for the second quarter, a decline from $2.33 billion during the same period last year, despite exceeding Wall Street expectations.

NEW YORK (AP) — Oil giant ConocoPhillips is planning to lay off up to a quarter of its workforce, amounting to thousands of jobs, as part of broader efforts from the company to cut costs.

A spokesperson for ConocoPhillips confirmed the layoffs on Wednesday, noting that 20% to 25% of the company's employees and contractors would be impacted worldwide. ConocoPhillips currently has a global headcount of about 13,000 — meaning that the cuts would impact between 2,600 and 3,250 workers.

“We are always looking at how we can be more efficient with the resources we have,” a ConocoPhillips' spokesperson said via email, adding that the company expects the “majority of these reductions” to take place before the end of 2025.

ConocoPhillips' shares fell 4.3% Wednesday. The Houston-based company's stock now sits at under $95 per share, down nearly 14% from a year ago.

News of the coming layoffs was first reported by Reuters, with anonymous sources telling the outlet that CEO Ryan Lance detailed the plans in a video message earlier Wednesday. In that video, Reuters reported, Lance said the company needed “fewer roles” while he cited rising costs.

Last month, ConocoPhillips reported second-quarter earnings of $1.97 billion. That beat Wall Street expectations, but was down from the nearly $2.33 billion the company reported for the same period last year.

In its latest earnings, reported on Aug. 7, ConocoPhillips continued to point to cost cutting efforts — noting that it had identified more than $1 billion in cost reductions and margin optimization. The company also said it had agreed to sell its Anadarko Basin assets for $1.3 billion.