Sep 02, 2015 09:05 AM EDT

ConocoPhillips' Workers Lose Jobs As U.S. Oil Company Prepares For Longer Downturn In Energy Industry


Around 1,800 workers of ConocoPhillips will lose their jobs as the Top 4 largest U.S. oil company plans to prepare for a longer downturn in the energy industry.

A spokesperson for the Houston-based gas and oil producer said on Tuesday in an e-mailed message that ConocoPhillips workers in North America will be mostly affected as well as roughly 500 workers from Houston. He added, "Our industry is undergoing a dramatic downturn, which has caused us to look at our future workforce needs."

Since last year, oil prices have taken a plunge by more than 50 percent, as a result, energy companies all throughout the world have terminated more than 120,000 employees and scaled down spending above $114 billion, as per Bloomberg Business.

ConocoPhillips' cuts came after Chevron Corp. decided to eliminate 1,500 jobs as part of its move to decrease spending by $1 billion.

Bulletin Leader reported that, earlier this year, CEO of ConocoPhillips, Ryan Lance, went over with investors the mission of giving them a wider perspective of how the firm was positioned for a future scenario where oil prices stayed shaky, especially on a global scale.

ConocoPhillips' shares went up by 14.49 percent during the remaining five days in trading but lost 2.36 percent on a monthly basis.

The company (NYSE:COP) also dropped -0.58 or -0.27 points in the last session to a per share of $46.55. Its stock also went lower by more than 40 percent over the previous year.

As a result of the oil industry bracing for the present normal of longer lower oil prices, an interesting trend begins to emerge. ConocoPhillips continues its operation in America, Great Britain, Norway, Australia, Canada, Indonesia, China, Timor-Leste, Malaysia, Libya, Qatar and Russian Federation.

ConocoPhillips' spokesman Rob Evans said cutdown of workers, which the staff were only informed on Monday, would take effect by mid-October, Press Examiner reported.

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