2025-09-05 10:31
publication
2025-09-05 10:31
The American energy concern Conocophillips has announced plans to reduce employment to 25 percent. in connection with the restructuring. The changes can cover up to 3,250 full -time jobs. Reuters said.
Conocophillips – one of the largest energy companies in the world, specializing in searching, extraction and production of oil and natural gas, announced a reduction in the current crew by about 20-25 percent. as part of a broadly racing restructuring program. The changes will include 2600–3250 full -time jobs from the current 13,000 jobs. Most exemptions are to take place by the end of 2025.
Cost cutting necessary
The decision was announced by Ryan Lance, head of the group, in the internal video material.
“I know that these changes are difficult and cause uncertainty,” said Lance, quoted by the Reuters agency, justifying the decision to optimize costs.
The company's operating costs increased from $ 11 per barrel in 2021 to $ 13 in 2024. In turn, in the second quarter of 2025 Conocophillips recorded a decrease in net profit to about $ 2 billion, which is the lowest result from the beginning of the pandemic. This is the result of a decrease in demand and rising operating costs.
Planned layoffs are also caused by the situation on the raw materials market. Oil prices in the US fell in 2025 by approx. 11 percent, including due to the increase in extraction by OPEC+ and growing competition from American producers. This forces energy companies to limit investments and employment.
The company's shares lose their value
At the news of planned exemptions, Conocophillips' quotations on the New York Stock Exchange fell by 4.5 percent.to the level of $ 94.55 per share. This is more than a daily decrease in S&P 500 Energy Index, which reduced by 2.6 percent. From the beginning of the year, the company's qualities have already lost 4.7 percent, while the entire energy index gained 5 percent.
Conocophillips restructuring is part of an internal program called “Competitive Edge”. The company plans to announce a new organizational structure and the composition of the management board in mid -September, and the end of the process is expected for 2026.
Kw
