ConocoPhillips has initiated a significant restructuring initiative, internally termed “Competitive Edge,” with strategic guidance from Boston Consulting Group (BCG). This move follows the company’s $23 billion acquisition of Marathon Oil and aims to streamline operations and reduce costs amid industry challenges, including oil prices hovering around $63 per barrel.
Key Elements of the “Competitive Edge” Program
- Centralization of Operations: ConocoPhillips is consolidating functions across its six operating segments—Alaska; Lower 48; Canada; Europe, Middle East, and North Africa; Asia Pacific; and Other International—to enhance efficiency and eliminate redundancies .
- Corporate and Support Function Reorganization: Following operational restructuring, the company plans to reorganize corporate and support roles to further streamline its organizational structure.
- Workforce Reductions: While specific details are pending, ConocoPhillips has informed employees of anticipated layoffs, with formal announcements expected in the fourth quarter of 2025.
- Asset Divestitures: The company is exploring the sale of certain non-core assets, including oil and gas holdings in Oklahoma acquired from Marathon Oil, as part of its portfolio optimization strategy.
BCG’s involvement suggests a focus on enhancing operational efficiency and strategic realignment to navigate the evolving energy landscape. The “Competitive Edge” program reflects ConocoPhillips’ commitment to maintaining competitiveness and financial resilience in a challenging market environment.
