The petroleum industry is experiencing a wave of layoffs driven by volatile crude prices and corporate mergers. Brent crude prices, currently at $63–64 per barrel, have fallen approximately 10.5% this year, prompting major oil companies to cut jobs to maintain profitability, raising concerns for supply chains and downstream markets.¹

Recent announcements highlight the trend. Imperial Oil, an ExxonMobil subsidiary, will reduce its workforce by 20% (about 900 jobs) by 2027, relocating its Calgary operations to Edmonton by 2028.² ExxonMobil plans to eliminate 2,000 jobs through office consolidations.³ ConocoPhillips and Chevron are also cutting thousands of jobs, with ConocoPhillips targeting up to 3,250 layoffs and Chevron planning 15–20% workforce reductions, partly due to its merger with Hess.⁴ BP is reducing approximately 7,000 roles, while Chevron continues its 15–20% cuts.⁵

Analysts cite “shale fatigue” and regulatory pressures, predicting a decline in U.S. onshore production of up to 170,000 barrels per day in 2025.⁶ Service firms like Halliburton and SLB have cut up to 20–40% of staff in key divisions. Experts warn that sustained low prices could lead to further layoffs, potentially disrupting supply and operations for jobbers.

What This Means for the Industry

These layoffs signal a major restructuring. Companies are prioritizing automation and digitalization to offset lower margins, which may drive innovation but could further reduce jobs, especially non-technical roles. Supply chain disruptions may affect product and service availability.

Note: Data is based on public reports as of October 6, 2025, and may change. Readers should verify with primary sources.