ConocoPhillips (NYSE:COP) Lays Off 1,800 Employees, Warns Of “Dramatic Downturn” In the Oil Industry

ConocoPhillips
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Oil and gas giant ConocoPhillips (NYSE:COP) announced on Tuesday that it’s laying off more than 400 employees and 100 Canadian contractors.

The great majority of the job cuts will take place in its Calgary office, as the high costs of oil production in the Canadian oil sands catch up with Canada.

The move represents about 15% of ConocoPhillips’ Canadian workforce, and will be coming in mid-October 2015. (Source: Reuters, last accessed September 1, 2015.) The Texas-based company will also be reducing its global workforce by around 10%, or 1,800 people, as the negative oil price forecast continues to hammer away at its bottom line.

This latest announcement ups the ante from the company’s announcement last March that it will be cutting its Canadian workforce by seven percent, or around 200 positions, indicating that a prolonged oil price collapse has had worse effects than expected.

ConocoPhillips’ total global workforce is approximately 18,000 people. The Houston-based company currently has 3,753 employees in its Texas headquarters, where reductions are expected to encompass about 500 workers.

The move is mirrored by other oil majors, as the largest energy companies are scrambling to cut costs in an effort to stem the bloodletting from the oil price collapse.

Many people who work in the oil and gas industry are now bracing themselves for a renewed round of layoffs from September onwards, as global crude oil benchmarks plunged to August lows unseen since 2009.

This is most keenly felt in the Canadian oil sands, where oil extraction is extremely expensive and thus among the first projects on the chopping block. Alberta alone has seen more than 35,000 oil-related jobs cut this year. (Source: CBC, last accessed September 1, 2015.)

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