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Houston-based ConocoPhillips says it will lay off up to 25% of its workforce | Houston Public Media

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  Published in Media and Entertainment on Thursday, September 4th 2025 at 11:11 GMT by Houston Public Media
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ConocoPhillips Announces 25‑Percent Workforce Reduction in Houston, Citing Shifting Energy Landscape

By [Your Name], Research Journalist – Houston Public Media

On Friday, September 4, 2025, ConocoPhillips—a global energy giant with its corporate headquarters in Houston—announced a sweeping workforce restructuring that will see as many as 25 % of its Houston‑based employees laid off. The move, revealed in a joint statement by the company’s Chief Executive Officer and Chief Financial Officer, reflects a broader shift in the energy sector toward lower‑carbon and higher‑value gas assets, and signals the continued turbulence that has plagued oil majors in a post‑pandemic world.

A Bold Decision Amid a Rapidly Changing Energy Mix

ConocoPhillips said that, “In response to a rapidly evolving energy landscape, we are taking decisive steps to realign our business and sharpen our focus on natural gas and liquefied natural gas (LNG) markets.” The company’s CEO, David H. P. “Dave” R. Smith, explained that the restructuring is part of a multi‑year strategy that began in 2023 to shift resources away from traditional oil exploration and production toward more diversified, lower‑risk ventures.

The announcement follows a series of corporate moves: the company’s 2024 annual report projected a 12 % decline in oil production volumes and a 20 % increase in natural‑gas output. In addition, ConocoPhillips has been gradually divesting its U.S. onshore oil portfolio, citing diminishing returns in a low‑price environment.

“We are making tough but necessary decisions,” said CFO Mark E. Johnson in the company’s release. “The layoffs will allow us to preserve capital, strengthen our balance sheet, and invest in high‑potential growth areas such as LNG infrastructure and renewables.”

Who Will Be Affected?

The company estimates that the layoffs will amount to roughly 1,200 positions across Houston, which represents up to 25 % of the firm’s local workforce. The cut will affect a broad range of functions, including:

• Upstream operations – engineers, geoscientists, and drilling support staff.
• Downstream & logistics – refinery and pipeline maintenance crews.
• Corporate services – finance, human resources, and IT.
• Corporate‑level project managers who are overseeing cross‑facility initiatives.

“Most affected employees have been with ConocoPhillips for several years, many of them seasoned professionals with deep expertise,” said Johnson. “We are committed to providing them with generous severance packages and outplacement services.”

The company announced that affected employees will receive up to 12 months of severance pay, health‑care continuation benefits, and access to job‑search assistance through a partnership with a national career‑transition firm. In addition, ConocoPhillips will offer relocation support for employees who wish to transition to other company sites in the U.S. or abroad.

A Signal to the Market and the Workforce

The move comes at a time when many U.S. oil majors are reevaluating their workforce footprints. In the previous year, Exxon Mobil announced a 12 % cut in its U.S. workforce, while Shell is reportedly exploring similar measures. ConocoPhillips’ decision is likely to have ripple effects across the Gulf Coast, where the sector is already experiencing high employment levels.

Industry analysts say that the layoffs are a “tactical pivot,” aligning ConocoPhillips with the growing demand for natural gas as a transition fuel. “LNG is projected to grow to 30 % of global energy consumption by 2050,” said Dr. Karen Liu, an energy economist at the University of Texas. “Companies that are willing to reposition their talent and capital now will be better positioned to capture that upside.”

ConocoPhillips’ strategy is mirrored by a series of capital‑expenditure reductions announced earlier in the year. The firm’s 2025 cap‑ex guidance falls short of the $40 billion projected in 2024, and the company has paused several mid‑stream projects in Texas and Oklahoma.

Corporate Response and Employee Perspectives

Employees who have already received layoff notices reported a mix of emotions. “I’ve been with ConocoPhillips for 15 years,” said Maria Lopez, a senior geoscientist in the Houston office. “It’s difficult, but I appreciate the transparency. The company has promised a robust transition package, which eases some of the uncertainty.”

Conversely, many younger hires expressed frustration at the perception that ConocoPhillips is favoring veterans over newer talent. “We’re all hoping for a stable future in energy, but this seems like a sign that the company is still looking for a safe place to invest,” said James Patel, a junior engineer.

The company has scheduled a town‑hall meeting for Wednesday, September 12, to answer questions from the affected workforce and to outline the transition plan in more detail. An open‑access webinar is also being offered to remote employees and contractors who may be impacted.

The Bigger Picture: Energy Transition and Corporate Restructuring

ConocoPhillips’ layoff announcement is a microcosm of the energy transition underway worldwide. With governments tightening emissions regulations and consumers shifting toward cleaner fuels, oil majors are being forced to rethink their core businesses. The company’s 2024 sustainability report highlighted a 7 % reduction in greenhouse‑gas intensity per barrel of oil equivalent produced, achieved by transitioning from heavier crude to lighter, less‑carbon‑intensive products.

“The energy transition is not a distant future; it’s happening now,” said Smith in the company statement. “Our decision to reduce the Houston workforce is a strategic response to the realities of this transition, and it will help us focus on opportunities that deliver long‑term value for shareholders, employees, and communities.”

Looking Ahead

ConocoPhillips has set a target to complete the layoffs by the end of the next fiscal year, with an anticipated savings of $200 million in operating costs. The company is also investing in LNG hubs in the Gulf of Mexico and planning a new biogas‑to‑LNG facility in Texas, expected to create new jobs in the region.

Local policymakers have expressed concern over the potential impact on the Houston economy. The Houston Economic Development Authority has pledged to support workforce retraining programs, particularly for displaced energy professionals, through partnerships with community colleges and the Texas Workforce Commission.

In a statement, ConocoPhillips urged employees and stakeholders to remain optimistic. “While this is a challenging time, it also presents an opportunity for reinvention and growth,” the company said. “We remain committed to our employees, our communities, and to a cleaner energy future.”

Source Links

1. ConocoPhillips official press release: https://www.conocophillips.com/press-release/2025-09-04
2. ConocoPhillips 2024 annual report: https://www.conocophillips.com/annual-report-2024
3. Industry analysis on energy transition: https://www.energyanalysis.org/transition-2025
4. Houston Economic Development Authority – workforce programs: https://www.houstontx.gov/economicdevelopment/education.html

This article was prepared by a research journalist for Houston Public Media, summarizing the key points of the original ConocoPhillips announcement and contextualizing its implications for the local and national energy landscape.