Following ConocoPhillips' $22.5 billion merger with Marathon Oil, the company plans significant organizational changes to optimize operations and reduce costs. We'll examine the upcoming 2025 workforce reductions, looking at both the company's strategic goals and the potential workforce impact. Our analysis draws from ConocoPhillips' past severance practices and compares their 2025 packages to industry standards. To help strengthen collective knowledge and negotiating power, consider sharing your severance details with the community.

ConocoPhillips Layoffs 2025: Current Situation

The $22.5 billion merger between ConocoPhillips and Marathon Oil is set to bring substantial workforce changes. The company has outlined plans to achieve $500 million in cost reductions through these changes.

While the company hasn't officially announced which departments or locations will see reductions, industry analysts expect the changes to primarily affect administrative roles and overlapping operational positions within the merged organizations. Employees should stay connected to official company channels for the latest updates on these organizational shifts.

Analysis of ConocoPhillips' Historical Severance Packages

ConocoPhillips Severance History

ConocoPhillips has maintained consistent severance support for employees affected by workforce reductions. Here's a detailed examination of their approach:

Standard Severance Structure

According to the company guide for departing employees, severance includes:

• Basic Benefit: Four weeks of base pay
  • Eligibility: Provided without requiring a General Release of Liability
  • Calculation: Equal to four weeks of current base pay
• Supplemental Benefit: Three weeks of base pay per service year, minus Basic Benefit
  • Eligibility: Requires signing a General Release of Liability
  • Calculation:
    • Total severance weeks = 3 weeks × years of service
    • Total payment = (Total severance weeks - 4 weeks) × weekly base pay
  • Maximum Benefit: Limited to 60 weeks of base pay

Example Calculation: For an employee earning $2,000 weekly with 10 years at the company:

• Total severance weeks = 3 × 10 = 30 weeks
• Total payment = (30 - 4) × $2,000 = 26 × $2,000 = $52,000

Executive Severance Framework

Higher-level employees fall under a different structure:

• Tier 1 Employees: Salary grade 26 and above
  • Payment: Two times the combined:
    • Annual base salary
    • Most recent target annual incentive
• Tier 2 Employees: Salary grade 23 to 25
  • Payment: One and a half times the combined:
    • Annual base salary
    • Most recent target annual incentive

Example Calculation: For a Tier 1 employee with $150,000 base salary and $50,000 target incentive:

• Total compensation = $150,000 + $50,000 = $200,000
• Severance payment = 2 × $200,000 = $400,000

Additional Support Elements

• Healthcare Continuation: Employees in company health plans can maintain COBRA coverage, with the company providing funds to offset the increased cost compared to active employee rates
• Retirement Benefits Enhancement: Extra service credit to boost retirement benefits:
  • Tier 1 Employees: Additional 2 years
  • Tier 2 Employees: Additional 1.5 years

Reported Variations

Employee accounts suggest some package differences:

• Employee Reports: Some mention receiving minimum 9-month packages, with others getting up to 104 weeks of pay. These often include base pay plus highest bonus from recent three years, along with stock vesting and year-long COBRA coverage
• Acquisition-Related Changes: During mergers like the Concho acquisition, package terms sometimes varied, though specific details differ among reports

Remember that individual circumstances, employment agreements, and policy updates can affect package terms. For precise details about your situation, consult ConocoPhillips' HR team or official documentation.

Oil and Gas Industry Severance Comparison

ExxonMobil

Package Structure:

• Base Severance: Reports indicate that ExxonMobil provided two months of garden leave plus two weeks of pay for each year of service
• Extra Benefits: Extended healthcare and career transition assistance mentioned by some employees

Chevron

Package Structure:

• Base Severance: Chevron offered three weeks of pay per year of service and covered health insurance for a full year.
• Extra Benefits: Time-limited health coverage and job search support reported

BP

Package Structure:

• Base Severance: BP provided one month of pay for each year of service. For employees who joined before 2009, the severance was enhanced to 1.5 months of pay per year of service
• Extra Benefits: Extended health coverage and career transition resources available

Shell USA

Package Structure:

• Base Severance: Shell USA's Special Voluntary Separation (SVS) program offered three weeks of pay per year of service, with a maximum of 78 weeks.
• Extra Benefits: Continued medical coverage and career guidance mentioned

Expected ConocoPhillips Severance Packages for 2025

Drawing from current information, here's what employees might anticipate:

Financial Components

Basic Benefit:

• Amount: Four weeks of base pay
• Eligibility: Automatic; no employee action needed

Supplemental Benefit:

• Calculation: Three weeks per service year, minus Basic Benefit
• Formula: Total severance pay = (3 weeks × years of service) - 4 weeks
  • Multiply resulting weeks by weekly base pay
• Maximum: 60 weeks of base pay
• Requirements: Sign General Release within 60 days

Example: For 10 years of service at $2,000 weekly:

• Weeks: (10 × 3) - 4 = 26 weeks
• Total: (26 × $2,000) = $52,000

Health Coverage

COBRA-enrolled employees receive support for continued coverage:

• Medical Plan:
  • Current Enrollees: Six times COBRA vs. active rate difference
  • Non-Enrollees: Eighteen times difference (PPO rates)
• Dental Plan:
  • Current Enrollees: Six times COBRA vs. active rate difference
  • Non-Enrollees: Eighteen times difference

Supplementary Benefits

• Retirement Enhancement: Additional service credit:
  • Tier 1: Two extra years
  • Tier 2: One and a half extra years

Note employee experiences show some differences, covered in the historical analysis section.

Moving Forward

While we await ConocoPhillips' official announcement about this year's specific terms, you can strengthen our community's knowledge by sharing past severance information to access our comparative database. Your contribution helps others understand their options and negotiate effectively. ConocoPhillips has set high standards for industry severance packages, and we expect their 2025 offerings to maintain this tradition. When you receive your package, remember that sharing your details helps everyone maximize their outcomes. For any unclear aspects of your severance or the process, an employment attorney can provide valuable guidance.

Stay connected with our community as you navigate this transition - your experience matters, and sharing it helps others facing similar challenges.