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ConocoPhillips today became the latest US oil company to announce sweeping job cuts, laying out plans to shed as much as 25pc of its global workforce.
The reductions could affect as many as 3,250 workers given the leading US independent has a total headcount of 13,000.
"We are always looking at how we can be more efficient with the resources we have," the company said. "As part of this process, we have informed employees that a 20-25pc reduction in our global workforce, which includes employees and contractors, is anticipated."
The US oil and gas sector is grappling with the fallout from oil's slide this year, spurred in part by President Donald Trump's on-off tariff strategy. Producers who face higher costs from tariffs on steel imports are also bracing for a looming surplus as the Opec+ group ramps up production just as demand shows signs of faltering.
The industry downturn follows a wave of consolidation in the shale patch that included ConocoPhillips' $17.1bn blockbuster deal for Marathon Oil last year. It also comes as US oil output is forecast to decline next year as lower prices weigh on drilling activity and producers run up against efficiency constraints.
The latest cuts follow those announced by Chevron, which unveiled plans in February to shed 15-20pc of its overall workforce starting this year. Chevron had previously set out a goal of reducing structural costs by $2bn-$3bn by the end of 2026. And in January, BP said it was cutting about 5pc of its workforce.
ConocoPhillips, which warned staff of potential job cuts earlier in the year, said last month it had identified more than $1bn of additional cost reductions and margin improvements. The company also more than doubled an asset sales target to $5bn after divestments to date came in ahead of schedule.
Most of the job cuts will take place this year.
