ConocoPhillips to Cut Up to 3,250 Jobs by End of 2025

HOUSTON, TX — ConocoPhillips announced Wednesday plans to eliminate up to 3,250 jobs—nearly a quarter of its global workforce—by the end of 2025 as part of a sweeping cost-cutting initiative.

The Houston-based oil giant, which employs around 13,000 people worldwide, said the reductions will come through layoffs of employees and contractors, with most cuts expected before the end of next year.

CEO Ryan Lance delivered the news in a video message to staff, citing rising production costs—now $13 per barrel compared to $11 in 2021—as a key factor driving the restructuring. The initiative, named “Competitive Edge,” is being implemented with Boston Consulting Group and will continue through 2026. A new management structure is set to be unveiled in mid-September.

“As we streamline our organization and take work out of the system, we will need fewer roles,” Lance said in the video, according to Reuters.

Following the announcement, ConocoPhillips’ stock price dropped approximately 4%. The company said it has already achieved more than $1 billion in cost and margin optimizations, including savings from its acquisition of Marathon Oil.

Earlier this year, the company disclosed plans to cut over 7,000 jobs—or 5% of its workforce—under the same broader restructuring effort. The former Marathon Oil headquarters has since been sold following the mega-merger, marking the end of an era for one of Houston’s legacy energy institutions.