Major oil and gas firms plan more job cuts in 2025 after thousands were laid off in 2024, amid falling crude prices and uncertainty in demand.
Oil and gas layoffs intensify as crude prices drop
An overview of layoffs in oil and gas companies announced between 2024 and 2025 shows that the world’s leading energy firms, along with their affiliates, are preparing further job cuts in 2025. These reductions follow thousands of layoffs in 2024, as the sector struggles with declining oil prices.
Brent futures have fallen nearly 10.5% since the beginning of the year, driven by increased OPEC+ production and demand uncertainty linked to U.S. trade policy.
Layoffs in oil and gas companies
According to Reuters, Exxon Mobil plans to cut around 2,000 jobs worldwide, affecting between 3% and 4% of its workforce, though U.S. positions will remain untouched for now.
Imperial Oil, majority-owned by Exxon Mobil, is set to reduce its workforce by about 20% by the end of 2027.
In the U.S., ConocoPhillips will cut between 20% and 25% of its staff, a move that triggered a 4.5% drop in its share price. Chevron also projects a 20% reduction in global headcount.
Oil and gas layoffs outside North America
The wave of layoffs in oil and gas companies extends beyond North America. In January, British Petroleum (BP) announced a $2 billion cost-cutting plan that includes shedding 5% of its global workforce.
Dutch rival Shell will cut 20% of its employees, particularly in oil and gas exploration. The hardest-hit offices are expected in Houston, The Hague, and the U.K., with smaller impacts elsewhere.
Malaysia’s Petronas plans to lay off nearly 10% of its workforce, or close to 5,000 jobs, under a restructuring program designed to secure the company’s survival over the next decade, according to local media reports.
A troubled sector despite strong protections
The data highlights an industry facing serious challenges despite strong government support in both industrialized and developing nations. The U.S. case is emblematic, with President Trump downplaying or denying the role of fossil fuels in global warming and climate change to shield companies that provide him with votes and funding. This narrative fuels the belief that job losses in oil and gas companies threaten the broader labor market worldwide.
