September 3, 2025 — The oil and gas industry is undergoing a sweeping downsizing effort, with international companies announcing the elimination of tens of thousands of jobs through 2024 and 2025 amid falling oil prices and consolidation pressures.
Industry consolidation and declining crude prices—exacerbated by rising production output from OPEC+ and economic uncertainty tied to U.S. trade policies—have prompted widespread layoffs across the sector. A Reuters factbox highlights numerous major players such as ConocoPhillips, Chevron, BP, Shell, and Petronas formally planning significant workforce reductions over the next two years.
Houston-based ConocoPhillips is spearheading the trend, revealing plans to cut 20–25% of its global workforce, amounting to 2,600–3,250 positions. The move forms part of its “Competitive Edge” restructuring programme, designed to control rising production costs and boost competitiveness and is expected to be completed by 2026.
Meanwhile, Chevron is set to trim 15–20% of its employees by 2026, targeting approximately 8,000 roles, as it navigates operational inefficiencies and integration challenges from its $53 billion acquisition of Hess.
Across the Atlantic, BP has announced cuts amounting to 5% of its global workforce, including 4,700 permanent and 3,000 contractor roles, aiming to reduce expenditures by £1.6 billion by 2026.
Smaller waves of job reductions are also hitting firms like APA Corp, which has already laid off nearly 300 employees globally, and others such as Halliburton, Equinor, Civitas, and Petronas, each executing workforce cuts as part of broader restructuring efforts.
The layoffs reflect a strategic recalibration within the energy sector—from an overreliance on expansion to an imperative for organizational efficiency amid shifting market dynamics.
