ConocoPhillips says it will cut workforce by 20-25%, shares fall

(Re -new, details and background adds, updates the share price)

Georgina McCartney, Arathy Somasekhar and Ernest Scheyder

Houston, 3 September (Reuters) – A company spokesman said on Wednesday that US oil and gas producer Conocophillips will cut 20-25% of the labor force in the middle of a wider restructuring program.

The company’s shares fell to $ 94 with a decrease of 4.7%.

In a statement to Reuters, the four conocophillips source, employees received an E -POSTA with a video message that detares the plans from CEO Ryan Lance this morning. Sources, the company will organize a town hall meeting at 9 am on Thursday morning.

Conocophillips has a global globally 13,000 employees, ie 2,600 to 3,250 employees will be affected. Conocophillips spokesman Dennis Nuss said that in a response sent to Reuters by e -mail, the cuts will be made before the end of the year.

Two of the sources said the new structure and administration will be open to the public in mid -September and that the new organization will be implemented until 2026.

Oil Major Chevron also announced layoffs like Service Company SLB earlier this year.

In April, two sources said that the Houston -based Conocophillips hired the management consulting company Boston Consulting Group to advise Reuters about the reconstruction and dismissal program.

Conocophillips’ net income fell in the second quarter, the lowest quarter of the Covid-19, which ended in March 2021, to about $ 2 billion since the end of the quarter. In May, the company warned the markets on uncertainty and volatility and added that it was trying to increase capital efficiency and reduce costs in the entire organization. (Reporting by Houston in New York, Georgina McCartney in Shariq Khan, Arathy Somasekhar and Ernest Scheyder; organizing by Nathan Crooks and David Gregorio)