ConocoPhillips, the fourth-largest U.S. oil company, plans to reduce its workforce by 10%, the latest example of the impact of the ongoing impact of low crude oil prices.
A majority of the 1,800 jobs being lost will come from North America, including more than 500 from Houston, Daren Beaudo, a spokesman for the Houston-based oil and gas producer, said Tuesday. “Our industry is undergoing a dramatic downturn, which has caused us to look at our future workforce needs,” he said.
The announced cuts at ConocoPhillips comes only months after a first round of cuts reduced staff by 5%. The cumulative impact of the reductions, to be felt most severely in North America, will be roughly 2,810 jobs, Kallanish Energy finds.
As oil prices have plunged by more than half since last year’s high, energy companies around the world have laid off more than 120,000 workers and reduced spending by more than $114 billion.
ConocoPhillips’s cuts follow earlier reductions at exploration-production and service companies. Fellow oil major Chevron said in July it was eliminating 1,500 jobs as part of its efforts to reduce spending by $1 billion. Calgary-based Penn West Petroleum said Tuesday it plans to cut 400 positions, or 35% of its workforce.
Many of the cuts have been concentrated in oil and gas service companies, such as Halliburton, Baker Hughes and Schlumberger.
Oil companies have also begun to put off spending on high-cost projects to hoard cash in the slump, canceling or delaying $200 billion since mid-2014, according to consulting firm Wood Mackenzie.
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