ConocoPhillips (COP) is bracing for significant workforce reductions as it steps up efforts to tighten costs across its operations. The oil giant plans to cut 20% to 25% of its global employees and contractors, translating to approximately 2,600 to 3,250 roles worldwide.
A company spokesperson noted that most of these reductions are expected to be completed before the end of 2025, signaling a determined approach to streamline operations amid shifting market dynamics. The news sent COP shares down 4.4% on Sept. 3, dragging the stock 17.5% below its 52-week high of $116.08.
The company’s latest quarterly earnings report further emphasized its focus on cost efficiency, revealing over $1 billion in identified cost savings and margin optimization opportunities. In addition, ConocoPhillips agreed to divest its Anadarko Basin assets for $1.3 billion, reinforcing its strategy to bolster liquidity and concentrate on core operations.
With the workforce cutbacks underway and stock prices under pressure, investors are now scrutinizing the company’s position to determine the right stance on COP stock.
Headquartered in Houston, Texas, ConocoPhillips engages in the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. The company commands a market cap of nearly $118.2 billion and operates across six business segments: Alaska, Lower 48, Canada, Europe, the Middle East and North Africa, Asia Pacific, and Other International.
As the largest explorer and producer in the world in terms of proved reserves and production, the company maintains a dominant footprint in the energy sector. Despite the scale, COP stock has faced headwinds, sinking 11.7% over the past year and 3.4% year-to-date (YTD).
Yet recent market momentum has offered some relief, with the stock climbing 11.5% over the past three months.
COP trades at 1.97 times sales, above the industry average but below its five-year historical range, suggesting a relative discount considering robust operational performance.
The company distributes an annual dividend of $3.12, delivering a yield of 3.3%. Its latest dividend of $0.78 was paid on Sept. 2 to shareholders of record on August 18, underscoring a commitment to returning capital to investors even amid strategic cost reductions.
