Major U.S. and European oil producers are undertaking significant workforce cuts in 2025 as declining oil prices and post-merger restructuring prompt cost-saving measures, according to industry sources and reports by Reuters.
ConocoPhillips plans to reduce its global workforce by up to 25%, with Canadian employees notified in early November. The Calgary-based firm, which operates the Surmont oil sands project in Alberta and Montney assets in British Columbia, will inform staff virtually on November 5 and in person at field locations the following day. ConocoPhillips currently employs about 950 people in Canada.
“We will not be sharing area-specific workforce numbers for current or impacted employees and contractors,” spokesperson Dennis Nuss told Reuters.
The cuts come after ConocoPhillips’ $22.5 billion acquisition of Marathon Oil Corporation in 2024, a deal that analysts saw as a move to gain scale and diversify exposure across U.S. shale basins. CEO Ryan Lance previously described industry consolidation as a “natural cycle” necessary for efficiency and growth.
Chevron, following its $53 billion purchase of Hess Corporation, plans to cut 15–20% of its workforce by the end of 2026, including 800 jobs in the Permian basin. ExxonMobil will slash 2,000 positions worldwide, with nearly half in Canada at Imperial Oil. The U.S. firm has already cut about 400 jobs in Texas after acquiring Pioneer Natural Resources in a $60 billion deal in May 2024.
UK-based BP is also accelerating reductions, particularly among contractors and office-based roles. The company has already cut 3,200 contractor positions, with a further 1,200 expected to exit by the end of 2025. CFO Kate Thomson noted that over a third of supply chain savings to date have come from contractor reductions, aided by technological efficiencies.
Industry analysts say that the U.S. shale patch is experiencing its deepest job cuts in three years. Lower oil prices have prompted slowing drilling activity and increased automation, pushing operators to reduce reliance on outside services while trimming internal workforces.
“Operators are less prone to utilize outside services and continue to reduce their own workforces,” an executive at an oilfield services firm told the latest Dallas Fed Energy Survey.
The wave of job cuts underscores a broader trend in the energy sector: after years of mega-mergers and consolidation, companies are now focused on streamlining operations, cutting costs, and boosting efficiency to navigate a softer oil price environment.
