ConocoPhillips (COP) Announces Its Plans to Reduce Its Global Workforce by 20% to 25%

Core Viewpoint - ConocoPhillips is undergoing a significant restructuring plan that includes a workforce reduction of 20% to 25% to enhance margins and cut costs, following a major acquisition and rising production costs [2][3]. Group 1: Workforce Reduction - ConocoPhillips plans to reduce its global workforce by 20% to 25%, potentially impacting up to 3,250 employees and contractors [2]. - This workforce reduction is part of a broader restructuring initiative aimed at improving operational efficiency and cost management [2]. Group 2: Financial Context - The restructuring follows ConocoPhillips' $17 billion acquisition of Marathon Oil in 2024, which has contributed to rising controllable production costs [3]. - Controllable production costs reached $13 per barrel in 2024, which is $2 higher than industry peers, prompting the need for cost-saving measures [3]. - The restructuring is expected to yield an additional $1 billion in cost savings [3]. Group 3: Organizational Changes - A new organizational structure and management team will be introduced as part of the restructuring, with details to be revealed in mid-September [3].