ConocoPhillips has unveiled a sweeping restructuring initiative that will see it reduce its global workforce by 20 to 25 percent, equating to between 2,600 and 3,250 jobs, including both full-time staff and contractors, with most of the cuts expected by the end of 2025 and the full plan completed by 2026. The company attributes this move to the need for greater efficiency and competitiveness amid a 12.5 percent decline in global oil prices and estimates that its production costs have risen from $11 to $13 per barrel since 2021—placing it at a disadvantage compared to peers.

This restructuring follows ConocoPhillips’ $22.5 billion acquisition of Marathon Oil. The company already expects $1 billion in annual synergies from that deal and has now identified another $1 billion in cost-reduction opportunities tied to workforce centralization and standardized global practices.

Shareholders responded sharply, with ConocoPhillips’ stock falling nearly 3.9 percent, underperforming broader oil-and-gas benchmarks such as the SPDR S&P Oil & Gas Exploration & Production ETF, which has declined roughly 1.9 percent this year.

Other oil majors have also announced significant layoffs this year. Chevron said in February it would cut up to 20% of its staff, bp  plans to reduce its workforce by more than 7,000 positions, and oilfield services giant SLB is trimming jobs as well.

KeyFacts Energy: ConocoPhillips US country profile