US-based independent oil producer ConocoPhillips has unveiled plans to trim its workforce at its headquarters in Houston.
The company can layoff up to 500 employees, around one-fifth of its workforce in headquarters, reported Reuters.
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This comes after several companies reduced the value of their assets and trimmed headcount to rein over expenses after Covid-19 pandemic dampened oil demand and prices.
ConocoPhillips, too, reported a loss of $1.93bn for the first nine months of this year. In the same period last year, the company posted a profit of $6.47bn.
The company said that the affected employees in Houston will be notified as early as 1 February 2021 with a 60-day advance notice.
They will also receive severance pay and assistance in finding new jobs, the news agency further added quoting the company.
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By GlobalDataCurrently, ConocoPhillips is working to determine the exact number of lay-offs.
ConocoPhillips spokesman John Roper was quoted by Reuters as saying: “We have been transparent with employees that targeted workforce reductions in certain areas of our business may be necessary from time to time to align organisational capacity with expected future activity levels.”
At the beginning of the year, ConocoPhillips had around 10,400 employees.
In October, ConocoPhillips signed a definitive agreement to acquire Concho Resources in an all-stock transaction.
The merger will create a unified company with an approximately $60bn enterprise value and a combined resource base of approximately 23 billion barrels of oil equivalent.
The $11.4bn deal is expected to close next year.
