Provided by Georgina McCartney and Arathy Somaskhar
Ryan Lance, Director General of Houston -Conocophillips, told employees on Thursday that one of the reasons he had to reduce to 25% of the labor force was because the US oil and gas producer became less competitive as it focused on loss of smaller competitors.
Lance spoke with the staff at the Town Hall meeting when he sent a video of jobs about reducing jobs as a broad restructuring of the cost -oriented costs.
Employees looking at an hourly meeting online and personally at the company Houston’s headquarters Thursday morning, and later that day they also learned that the dismissals would begin on November 10.
Lance said he had recently been a priority, not under control.
“The price and all the competitiveness of the company probably took advantage of those initiatives and things we did for very real reasons, important reasons for the company,” said Lance record, recording Reuters.
“I blame for the fact that I did not pay attention and do not consider other things that are in the center and important,” Lance added, who has been working in the best job for 13 years.
“I have to pay more attention to it,” Lance said, talking about the sustainable structure and health of the company.
Conoco bought a smaller peer marathon oil last year for $ 22.5 billion. 2021 She bought Concho Resources for $ 9.7 billion and also purchased Permia’s assets from Naft Major Shell for $ 9.5 billion. The energy industry has experienced the largest consolidation in the past two years.
“We were probably a little behind the cost effort … Maybe we had to be smarter about how we did it,” Lance told staff.
On Friday, the third largest US oil manufacturer’s shares decreased by 3.7% to about $ 92.22, while a wider S&P 500 energy index decreased by 2.4%.
While many were hoping to reduce jobs after the company noted the need to reduce costs, the reduction scope surprised the industry, said Ed Hirs, an energy collaborator at Houston University.
“It looks like Lance took his hands off the steering wheel,” said the Conoco source, who attended Thursday’s Town Hall meeting.
The source that refused to be named because they were not allowed to speak in the recording said that although they appreciated Lance’s honesty, they also felt that he had avoided answering certain questions.
“Lance only shocked the questions and did not answer directly. After the town hall, everything did not feel clear or clearer,” the source added.
The employee asked how people would be dismissed correctly and dignified during Thursday’s Town Hall. The source said the atmosphere was frustrated and frustrated.
“This decision is a lot of weight and what we need to do for long-term growth and success of the company. Our executive leadership team and I take it seriously, and I do not underestimate the influence of people, families and the workforce we have in our company,” said Lance on Friday in repeated reports.
Although the changes in management are expected to be announced in mid-September, there will be no changes or reduction for the executive team, the source of the issue, adding that the company’s executive team has shrunk with two to sepicals this year for retirement.
“The management team still remains quite strong, in my opinion, the company continues to look for a high quality portfolio, looking for ways to get out of core assets and manage costs,” said LSSEg data with Conocophillips in the eyes of 0.05% or approximately $ 50.8 million. USD.
A heavy labor market
Conoco’s reduction of workplaces is the last popularity of the most important oil and gas company. The industry faces increasing costs and lower prices because Opec+provides more online production to regain market share.
Reduction of labor reduces the promise of US President Donald Trump to increase US oil and gas production and its impact on global markets.
Conoco -controlled costs increased by approximately $ 2 per barrel from 2021 to 2024. Up to $ 13, making it harder for the company to compete, Lance said in a Wednesday video report.
“It was our problem. The cost of the unit is raised faster than our products and income that eats our margins, and obviously you can’t let it go forever,” Lance said during Thursday’s Town Hall.
Conoco has directed about $ 1 billion in costs of spending on the purchase of marathon oil last year, and the company also said that by 2026. By the end of 2026 By the end of the 19th century, you want to save another $ 1 billion of releases and other reducing measures for renting operations, transportation and processing.
April Two sources of Reuters said Conoco hired the management consulting company Boston Consulting Group to advise a reorganization and dismissal program called the “competitive land”.
“Everyone was just screaming and then started looking for something else because we weren’t sure what the result would be and what would be released, because there are many positions in institutions where you don’t have to be there,” said the second source that left the Conocophillips last month.
(Georgina McCartney and Arathy Somaskhar reports in Houston; edited by Liz Hampton, Simon Webb and Marguerita Choy)
