International job cuts increase in 2025 due to dropping oil prices while mergers and acquisitions rise

In 2025, the global energy industry faces an unprecedented wave of layoffs as businesses grapple with the effects of weakening crude oil prices and a surge in mergers and acquisitions. The decline in prices is evident in the 10.5% year-to-date decrease in Benchmark Brent crude futures, influenced by a rise in OPEC+ output and lingering uncertainties surrounding U.S. trade policies.

Major companies like Exxon Mobil, Imperial Oil, Halliburton, OMV, ConocoPhillips, SLB, Chevron, APA Corp, BP, Petronas, Civitas Resources, Harbour Energy, Equinor, and Shell are all announcing significant job cuts to stay afloat amid these challenging market conditions. Exxon Mobil is set to lay off 2,000 workers globally, marking a 3% to 4% reduction in its total workforce. Similarly, Imperial Oil plans to reduce its employee count by 20% by the end of 2027, signaling a major reorganization that will significantly impact its presence in Calgary, Canada.

In the oilfield services sector, Halliburton has been downsizing its staff, with recent layoffs affecting 290 employees in Argentina. OMV, the Austrian energy group, aims to cut 2,000 out of its 23,000 global workforce. Meanwhile, ConocoPhillips, SLB, Chevron, APA Corp, and BP are enacting layoffs ranging from 15% to 25% of their total workforce as part of broader restructuring efforts to survive the current market volatility. Malaysian state energy firm Petronas has announced a 10% reduction in its workforce, emphasizing the broad impact of these developments on the global energy landscape.

In the UK, Harbour Energy is trimming 250 jobs in Aberdeen, representing approximately 25% of its workforce. Equinor and Shell are also streamlining their operations by cutting jobs in response to evolving market conditions. Notably, Shell is scaling back its oil and gas exploration and development workforce by 20%, following previous reductions in renewables and low-carbon businesses.

As the industry navigates this tumultuous period, energy companies around the world are forced to make difficult decisions to adapt to the changing landscape. The job cuts underscore the challenges faced by the sector and the need for businesses to strategically realign their operations to remain competitive in a volatile market environment.