ConocoPhillips, a U.S. oil company, is set to reduce its workforce in Canada, as reported by three sources and a company memorandum analyzed by Reuters. The company aims to downsize up to 25% of its global employees by the following year. The memo did not specify the exact number of layoffs but mentioned that the process would commence at the Canadian operations in early November.
Virtual notifications will be sent to employees in Calgary on November 5, while those at the Surmont oilsands project in northern Alberta and the Montney shale area in British Columbia will receive in-person notifications the next day, according to the memo.
ConocoPhillips spokesperson, Dennis Nuss, stated via email that specific figures regarding affected employees and contractors would not be disclosed.
Impact of Oil Price Decline
As of the end of 2024, ConocoPhillips had 950 employees in Canada, with a recorded Canadian production of 164,000 barrels of oil equivalent per day in the same year.
The decline in oil prices has led to significant challenges for ConocoPhillips and its U.S. counterparts this year, resulting in workforce reductions, capital expenditure limitations, and drilling cutbacks. Chevron, a major U.S. oil company, announced plans to lay off up to 20% of its workforce in February, while other industry players such as SLB and BP are also undergoing staff reductions.
Although major domestic oilsands companies in Canada have maintained some resilience amidst the economic downturn, U.S.-owned enterprises are now starting to streamline their Canadian divisions to enhance operational efficiency. Imperial Oil, a Canadian company majority-owned by ExxonMobil, announced intentions to reduce its workforce by around 20% by the end of 2027, part of a broader restructuring plan that will eventually lead to the closure of most of its operations in Calgary.