Leaked memo part of global drive to cut 20% of workforce
U.S. oil major ConocoPhillips is preparing to lay off employees across its Canadian operations in early November as part of a broader global workforce reduction that could see as much as a quarter of its staff eliminated by next year.
According to a company memo reviewed by Reuters, affected employees in Calgary will be informed virtually on November 5, while those working at the company’s Surmont oil sands site in northern Alberta and its Montney shale play in British Columbia will receive in-person notifications the following day. The memo did not specify the number of employees who will be impacted.
“We will not be sharing area-specific workforce numbers for current or impacted employees and contractors,” said ConocoPhillips spokesperson Dennis Nuss in an email.
The move comes amid persistent weakness in oil prices, which has prompted many U.S. and global producers to scale back spending, reduce drilling programs and cut staff. ConocoPhillips employed approximately 950 people in Canada at the end of 2024, according to its company website. Its Canadian production last year averaged 164,000 barrels of oil equivalent per day.
Chevron announced in February that it would lay off up to 20 per cent of its global workforce, while BP and SLB have also begun implementing job cuts.
For Canadian producers, the local picture remains somewhat steadier. Domestic oil sands firms have benefited from several years of cost discipline and from the weaker Canadian dollar, which helps support export margins. However, the slowdown affecting U.S.-owned operations has now extended north, as international companies consolidate to reduce costs and simplify structures.
Imperial Oil, majority-owned by ExxonMobil, said in September it would trim its workforce by about 20 per cent by 2027 and close much of its Calgary footprint, citing efficiency and restructuring goals.
ConocoPhillips’ Canadian presence dates back decades. The company’s roots in the country can be traced to the 1950s through its predecessor firms, with major growth following the merger of Conoco and Phillips Petroleum in 2002. The company’s key assets include the Surmont oil sands project in northern Alberta and its holdings in the Montney formation in British Columbia, where it has pursued both conventional and unconventional development. From its headquarters in Calgary, the Canadian arm has played an important role in advancing steam-assisted gravity drainage (SAGD) technology and in promoting responsible production standards within the oil sands sector.
For HR professionals, the announced job reductions underscore the tension between cyclical commodity markets and long-term workforce planning. Despite employment volatility in the upstream oil and gas sector, competition remains strong for skilled workers in engineering, safety and environmental roles. Companies managing layoffs must navigate the complex balance of cost containment and talent retention in a tight labour market.
The timing of the cuts, arriving as organizations finalize year-end budgets, will also challenge human resources teams to prioritize clear communication, fair severance processes and re-employment support for affected staff. For Canada’s energy workforce, the coming months may mark another difficult adjustment in a sector that continues to evolve with each swing in the global oil market.
