ConocoPhillips To Lay Off Up To 25% Of Its Workforce: Report

ConocoPhillips (COP) is reportedly preparing to lay off up to a quarter of its workforce, with an official announcement expected Thursday.

According to a Reuters report, employees received an internal email this morning that included a video message from CEO Ryan Lance outlining the plans. "As we streamline our organization and take work out of the system, we will need fewer roles," he said. A company town hall is scheduled for 10 a.m. ET, where the announcement is expected to be made.

ConocoPhillips’ stock fell as much as 4% in midday trade. However, on Stocktwits, retail sentiment improved to ‘bullish’ from ‘neutral’ a day ago.

The report stated that the layoffs could affect between 2,600 and 3,250 of ConocoPhillips' approximately 13,000 employees worldwide, with most cuts expected to occur before year-end. Citing people familiar with the matter, it noted that the restructuring had already begun and that the company is also centralizing some of its functions. The report added that reorganization in corporate and support functions is expected to follow.

The new structure and management lineup are expected to roll out by mid-September, with the reorganization to be completed by 2026. ConocoPhillips spokesperson Dennis Nuss confirmed the layoffs in a statement to Reuters, stating that most of the cuts will be made before the end of the current calendar year. 

"We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that workforce reductions are anticipated," Nuss said.

The restructuring reportedly follows mounting cost pressures. In the video message, Lance informed employees that controllable production costs have increased from $11 a barrel in 2021 to $13 in 2024, which is approximately $2 above those of major competitors. 

The layoffs follow an April report that ConocoPhillips had hired the Boston Consulting Group to advise on its restructuring and layoff program, internally dubbed “Competitive Edge.”

Read also: ABTC Stock Makes Nasdaq Debut, Trading Halted After Early Swing

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on