U.S. oil and gas producer ConocoPhillips plans to cut 20-25% of its workforce due to restructuring, with CEO Ryan Lance announcing the move in a video message. Shares dropped 4.5% to $94.55, reflecting industry pressures from falling oil prices and increased costs per barrel. Chevron, SLB, and BP are also reducing staff.

ConocoPhillips aims to reduce costs and improve margins, identifying over $1 billion in savings on top of previous cost reductions from acquisitions. The company, with 13,000 employees globally, will cut between 2,600 and 3,250 jobs by year-end. The reorganization, announced in mid-September, will be completed by 2026.

The company’s net income fell to around $2 billion in the second quarter, the lowest since March 2021 due to COVID-19 impacts. Benchmark U.S. crude prices have dropped 11% this year, impacting ConocoPhillips’ performance. Shares fell 4.7% this year, contrasting with a 5% rise in the S&P 500 Energy Index.

Read more at Yahoo Finance: ConocoPhillips says it will cut workforce by 20-25%, shares fall