ConocoPhillips (NYSE:COP) shares closed down on Wednesday. The company announced it will cut its workforce by 20% to 25%.
What To Know: According to Reuters, ConocoPhillips will eliminate between 2,600 and 3,250 roles from its global workforce of about 13,000 employees. Most of the job cuts are expected to be made before the end of the year, a company spokesperson said.
CEO Ryan Lance outlined the restructuring in a video message, citing rising costs and pressure from lower oil prices. He said controllable costs rose to $13 per barrel in 2024 from $11 in 2021.
The company plans to release details of a new structure and management in mid-September, with the reorganization scheduled for completion by 2026. ConocoPhillips has already identified more than $1 billion in cost reduction and margin enhancement opportunities on top of $1 billion in savings from its Marathon Oil acquisition last year.
COP Price Action: ConocoPhillips shares closed Wednesday down 4.38% at $94.65, according to data from Benzinga Pro.
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