ConocoPhillips to lay off nearly a quarter of its workforce

ConocoPhillips confirmed on Wednesday that it plans to cut between 20% and 25% of its global workforce by the end of this year. The layoffs are part of a major cost-cutting initiative.

CEO Ryan Lance reportedly told employees in a video message that ConocoPhillips needs “fewer roles” amid rising production costs.

The company employs around 13,000 people, and the layoffs would affect roughly 2,600 to 3,250 jobs.

Shares fell 4.3% following the announcement, leaving the stock down nearly 14% year-over-year.

The cuts come despite ConocoPhillips reporting $1.97 billion in Q2 earnings, beating analyst expectations. However, it was down from $2.33 billion a year earlier.