Houston oil giant ConocoPhillips will lay off up to 25% of workforce

Workforce News

ConocoPhillips' lay offs could impact thousands of jobs. ConocoPhillips/Facebook

Oil giant ConocoPhillips is planning to lay off up to a quarter of its workforce, amounting to thousands of jobs, as part of broader efforts from the company to cut costs.

A spokesperson for ConocoPhillips confirmed the layoffs on Wednesday, September 3, noting that 20% to 25% of the company's employees and contractors would be impacted worldwide. ConocoPhillips currently has a global headcount of about 13,000 — meaning that the cuts would impact between 2,600 and 3,250 workers.

“We are always looking at how we can be more efficient with the resources we have,” a ConocoPhillips' spokesperson said via email, adding that the company expects the “majority of these reductions” to take place before the end of 2025.

ConocoPhillips' shares fell 4.3% last week. The Houston-based company's stock now sits at under $95 per share, down nearly 14% from a year ago.

News of the coming layoffs was first reported by Reuters, with anonymous sources telling the outlet that CEO Ryan Lance detailed the plans in a video message earlier Wednesday. In that video, Reuters reported, Lance said the company needed “fewer roles” while he cited rising costs.

Last month, ConocoPhillips reported second-quarter earnings of $1.97 billion. That beat Wall Street expectations, but was down from the nearly $2.33 billion the company reported for the same period last year.

In its latest earnings, reported on August 7, ConocoPhillips continued to point to cost cutting efforts — noting that it had identified more than $1 billion in cost reductions and margin optimization. The company also said it had agreed to sell its Anadarko Basin assets for $1.3 billion.

The layoffs could affect about 14,000 of the 140,473 workers employed by the Austin, Texas, company at the end of last year. Photo courtesy of Tesla

Tesla plans to lay off 10 percent of workforce after dismal quarterly sales

making cuts

After reporting dismal first-quarter sales, Tesla is planning to lay off about a tenth of its workforce as it tries to cut costs, multiple media outlets reported Monday.

CEO Elon Musk detailed the plans in a memo sent to employees. The layoffs could affect about 14,000 of the 140,473 workers employed by the Austin, Texas, company at the end of last year.

Musk's memo said that as Tesla prepares for its next phase of growth, “it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” The New York Times and CNBC reported. News of the layoffs was first reported by electric vehicle website Electrek.

Also Monday, two key Tesla executives announced on the social media platform X that they are leaving the company. Andrew Baglino, senior vice president of powertrain and energy engineering, wrote that he had made the decision to leave after 18 years with the company.

Rohan Patel, senior global director of public policy and business development, also wrote on X that he was leaving Tesla, after eight years.

Baglino, who held several top engineering jobs at the company and was chief technology officer, wrote that the decision to leave was difficult. “I loved tackling nearly every problem we solved as a team and feel gratified to have contributed to the mission of accelerating the transition to sustainable energy,” he wrote.

He has no concrete plans beyond spending more time with family and his young children, but wrote that he has difficulty staying still for long.

Musk thanked Baglino in a reply. “Few have contributed as much as you,” he wrote.

Shares of Tesla fell 4.8 percent Monday afternoon, hours after news of the layoffs and departures broke. Shares of Tesla Inc. have lost about one-third of their value so far this year as sales of electric vehicles soften.

Tesla sales fell sharply last quarter as competition increased worldwide, electric vehicle sales growth slowed, and price cuts failed to draw more buyers. The company said it delivered 386,810 vehicles from January through March, nearly 9 percent below the 423,000 it sold in the same quarter of last year.

Since last year, Tesla has cut prices as much as $20,000 on some models as it faced increasing competition and slowing demand. The price cuts caused used electric vehicle values to drop and clipped Tesla's profit margins.

The company has said it will reveal an autonomous robotaxi at an event in August.

Here's what you should consider if you need to make cuts to your business — now or in the future. Photo via Getty Images

4 layoff alternatives energy businesses should consider in a downturn, according to this Houston expert

guest column

Preparing for a potential economic downturn can be unsettling for employers and employees. As payroll is typically one of the largest expenditures for a business, no matter its size, layoffs seem like the quickest fix. While this may offer short-term relief, they can severely impact operations and workplace culture.

When staff is reduced, culture can suffer. Employee morale can decrease and distrust may build, especially if layoffs are not communicated properly. This can lead to the remaining employees feeling anxious about their own future with the organization and spur them to look for employment elsewhere, which can affect an organization’s overall productivity and day-to-day operations.

Business owners should get creative and consider the impact and the many alternatives before resorting to workforce reductions.

Analyze salaries

If the organization’s downturn is short-term, senior leadership and upper management could accept temporary salary reductions until business improves. However, if the situation is more dire, leaders might consider an option such as cutting overhead with job sharing. Employee numbers then remain the same, but two positions become one and it is filled by two part-time employees to support a function or role. Furloughs for non-essential employees give employers time to consider if permanent layoffs are necessary. Of course, this requires an understanding of each performers contribution within the organization to determine overall impact and level of “necessity.”

Look at schedules

Permanent remote work could save on operating costs, such as leases and travel expenses, which gives more budgetary leeway to avoid layoffs. Another approach is implementing a four-day workweek to reduce hours and salaries by 20 percent. The added benefit to a shortened workweek is better employee work-life balance.

Scale Back Benefits

When finances are in a critical state, and leadership is looking to avoid layoffs, employers can scale benefits and perks for all employees. Temporarily pausing the 401(k) match, relying more on virtual business meetings instead of incurring travel expenses, and cutting employee bonuses can help ease the economic burden without letting people go. As with salary reductions, scaling back on benefits should begin with leadership before expanding to others.

Streamline Systems

When auditing the company, employers should also evaluate company processes and workflows for efficiency. It’s possible an employee could be more productive in a different role or a process may be found to be more laborious than necessary. Digital software is another alternative to help streamline systems. Employee feedback is another great resource to help identify gaps and streamline processes. A good practice is to have performers look for ways to make tasks within their role more efficient and productive.

Every decision has its costs. The most important thing employers can do is to be open and honest with employees, including transparency about the state of business. This communication style can increase employee buy-in during economic uncertainty and encourage employees to rally and be part of the resiliency of the organization.

------

Karen Leal is a performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

This article originally ran on InnovationMap.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

ENGIE inks deal to supply wind energy for Oracle’s Texas operations

wind deal

Houston-based renewable energy company ENGIE North America has made a deal to supply up to 568 megawatts of renewable electricity for tech giant Oracle's projects in Texas.

The power will come from ENGIE’s wind resources serving the Electric Reliability Council of Texas (ERCOT) grid. Oracle is developing data centers in Abilene and Shackelford, Texas, according to its website.

The Oracle deal is part of ENGIE’s efforts to bring substantial new electricity supply to the grid. In the past six years, ENGIE has developed 12 gigawatts of new renewable generation and battery storage capacity in North Americas, equaling $11 billion in capital, according to the company.

"Our customers are looking for reliable, scalable energy solutions that can support long-term growth," Anne-Laure Chassanite, interim CEO of ENGIE North America, said in a news release. "ENGIE has invested heavily in developing new generation resources across North America, and we're pleased to support Oracle as it continues to expand its operations in Texas. These agreements reflect the strength of our portfolio and our ability to deliver customized energy solutions that help customers meet their business objectives.”

Computer technology and cloud computing company Oracle is working towards its goal to match 100 percent of AI data center electricity use with carbon-free electricity by 2035.

"Oracle is taking a responsible approach to meeting the energy needs of our growing AI and cloud operations in Texas — investing in carbon-free electricity without shifting costs to consumers," Julia Robin, head of infrastructure planning and sourcing for Oracle Cloud Infrastructure, added in the release. "Our agreements with ENGIE advance Oracle's goal to match 100 percent of our AI data center electricity use with carbon-free electricity by 2035, while supporting long-term economic growth with no cost impact to the state of Texas.”

ENGIE also recently won the 2026 Green Power Leadership Award in the Market Innovation category for its work advancing 24/7 renewable energy solutions. The awards honor individuals and companies advancing sustainability and renewables in the energy industry through innovation and leadership.

The company has inked major deals to supply renewable energy to other major companies like Meta, Daikin and others.

Houston energy and innovation leaders come together at Argonne National Laboratory

The view from heti

Nearly 20 companies from Houston, ranging from global multinationals to innovative startups, joined the team at Argonne National Laboratory in Lemont, Illinois, for a full day of meetings, discussions, and networking focused on advancing innovation, commercialization, and industry collaboration.

The fly-in organized by the Houston Energy Transition Initiative, provided a unique opportunity for companies to engage directly with Argonne researchers, technical experts, and leadership while gaining a deeper understanding of the laboratory’s world-class capabilities. Participants explored how national laboratories can help bridge the gap between breakthrough research and commercial deployment, particularly in areas critical to U.S. competitiveness and economic growth.

The significance of this engagement extends beyond a single visit. While the U.S. Department of Energy operates 17 national laboratories, none is located along the Gulf Coast, a region uniquely home to industry, infrastructure, and energy systems at commercial scale. HETI’s continued work with the national laboratories helps bridge that geographic and operational gap by connecting world-class scientific research with companies that understand how to scale and deploy technologies. The Argonne fly-in also created space to address practical barriers to collaboration, including complex agreements and lengthy contracting timelines, and to explore ways to establish partnership frameworks more efficiently.

Explore HETI’s key takeaways from the fly-in:

1. Scaling Technologies for Commercial Use

A central theme was the importance of scale-up infrastructure and the role Argonne plays in helping companies reduce technical and manufacturing risks. Participants learned how facilities such as the Materials Engineering Research Facility (MERF) support the transition from laboratory discoveries to pilot-scale production and ultimately commercial manufacturing. These capabilities are especially valuable for companies working to move promising technologies from concept to market.

The discussions also highlighted Argonne’s extensive work in critical materials, battery recycling, advanced manufacturing, and supply chain resilience. Attendees learned about initiatives including the ReCell Center, AI-enabled materials discovery, and advanced modeling tools that can help businesses understand supply chain vulnerabilities and evaluate mitigation strategies. These capabilities have applications across energy, chemicals, manufacturing, semiconductors, defense, and emerging technologies.

2. Creating Pathways for Collaboration

Another key takeaway was the importance of engaging early. Companies do not need to arrive with a fully developed project or solution. Argonne offers multiple pathways for collaboration, including sponsored research, user facility access, technology licensing, pilot-scale testing, and Cooperative Research and Development Agreements (CRADAs). These partnerships help companies access specialized expertise, facilities, and analytical tools that can accelerate innovation and commercialization

3. Building Connections Across Industry and Research

The fly-in reinforced the value of relationship building. Bringing together nearly 20 organizations in one place created meaningful opportunities for collaboration, knowledge sharing, and identifying future projects.

The conversations throughout the day demonstrated a shared commitment to strengthening domestic innovation, developing resilient supply chains, and creating pathways to bring new technologies to market.

———

This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. Learn more about HETI’s role in advancing solutions and building partnerships to leverage Houston’s industry leadership for an energy-abundant, low-carbon future.

Fervo produces first geothermal power at flagship Utah project

energy milestone

Fervo Energy’s flagship project in Utah just generated its first geothermal power.

The electricity is now flowing to the power grid from one of Cape Station’s three generation units, Houston-based Fervo said in a news release. This represents an early but important milestone for the project, as the unit isn’t scheduled to deliver contracted power until Oct. 1.

The achievement, coming four months after Fervo’s roughly $2.2 billion IPO, demonstrates the viability of enhanced geothermal systems (EGS).

“This is a gamechanger for the geothermal industry. It establishes EGS as the defining new power generation technology of our time, and we believe it shows that the commercial and technical maturity of EGS is ready to meet the urgent need for reliable, clean power,” Tim Latimer, co-founder and CEO of Fervo, said in the release.

The plant’s two other units are scheduled to launch commercial operations on Jan. 1.

The three units make up the project’s 99-megawatt first phase. The next phase, which will add 400 megawatts of capacity, is under construction. The second phase is set to go online in 2028.

Altogether, Cape Station will provide more than 4 gigawatts of capacity, with 900 megawatts already spoken for. The 900 megawatts of contracted electricity would be enough to power nearly 1 million U.S. homes per year.

“Cape Station works because we treated the subsurface like an engineering challenge,” Jack Norbeck, co-founder and chief technology officer of Fervo, added in the release. “Years of drilling, completion design, subsurface modeling, and flow testing led to this moment, and this is the validation that matters most.”

Enhanced geothermal continuously draws on heat that’s deep underground, producing electricity around the clock regardless of weather or time of day. That makes it one of the only carbon-free resources capable of constant power delivery, which is critical for data centers and AI infrastructure.

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME