ConocoPhillips To Slash Up To 25% Of Workforce

ConocoPhillips, one of the largest independent exploration and production (E&P) companies in the U.S., told employees earlier that it plans to reduce its overall workforce by around 25%. The announcement comes as U.S. economic data show signs of softening, such as the disappointing jobs figures earlier today, which have pushed the odds of a 25-basis-point interest rate cut later this month to nearly 96%. WTI crude prices are trading lower amid increased concerns about OPEC supply. 

A company spokesperson confirmed to Reuters that ConocoPhillips will cut its workforce by 20% to 25%. At the end of 2024, the company employed 11,800 people globally. A 25% reduction would put nearly 3,000 jobs at risk.

Here’s more from Reuters:

Employees received an email this morning containing a video message from CEO Ryan Lance detailing the plans, three sources told Reuters. The company is set to hold a townhall meeting on Thursday morning at 9 a.m. central time, the sources said.

ConocoPhillips provided no details on the reasoning behind the upcoming cuts. However, JOLTS data released earlier today suggest that a 25-basis-point interest rate cut on Sept. 17 may be justified, given the continued deterioration in the labor market.

Mounting economic uncertainty, combined with the Trump administration’s push to “Drill Baby Drill” mandate to unlock America’s fullest energy potential and drive down costs, along with steady OPEC supply, has weighed on WTI prices, which dipped into the $63/bbl range by the lunch hour.

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