ConocoPhillips will reduce its workforce by 20–25% as part of a broad reorganization announced to employees this week, according to a new Reuters report. The company said reductions will occur across functions and geographies, with further details to be shared directly with staff through internal briefings.
The action follows months of streamlining under an internal program known as Competitive Edge. In April, Reuters described work with Boston Consulting Group to centralize services, eliminate duplicative roles, and simplify organizational layers. Those steps were framed alongside integration work following the Marathon Oil deal and a focus on tighter corporate cost control.
Initial reductions are expected to begin in the fourth quarter, with organizational changes continuing into 2026 as business units transition to shared-service models, according to UpstreamOnline. The company’s internal communications process includes scheduled employee forums to outline timing, redeployment options, and severance policies, as reported by Reuters.
Initial workforce actions are slated to start ahead of year-end, with additional changes staged through 2026 as systems and processes are migrated to the new structure.
ConocoPhillips is not alone. Chevron has announced plans to cut 15–20% of its global workforce, or up to 8,000 jobs, by 2026, citing cost savings and simplification needs. The cuts are expected as part of a broader organizational reset that accompanies technological upgrades. The Financial Times says Chevron expects to save $2-3 billion through this effort.
BP is also executing mass reductions, with around 6,200 corporate positions, or 15% of its office-based workforce, set to be eliminated by year-end, along with 4,400 contractor roles, in pursuit of $2 billion in structural cost reductions.
Underlying these cutbacks is still-soft demand, high operational costs, and pressure to reallocate capital amid energy transition headwinds. In Texas alone, upstream oil and gas has shed nearly 3,000 jobs so far this summer, as lower rig counts and price volatility signal broader structural shifts, according to the Houston Chronicle.
By Charles Kennedy for Oilprice.com
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