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A wave of layoffs is sweeping through the global oil and gas industry in 2025, as major energy companies respond to falling crude prices, post-merger integration, and the accelerating shift toward renewable energy. Chevron, BP, Shell, and Petronas are among the hardest hit, collectively cutting tens of thousands of jobs in what analysts are calling the largest workforce reduction in the sector in over two decades.
Chevron announced plans to eliminate up to 20% of its global workforce, amounting to nearly 9,000 jobs, as part of a strategic overhaul following its acquisition of Hess Corporation. The company cited the need to simplify its structure, reduce operating costs, and improve profitability amid declining margins and rising competition from clean energy providers.
British oil major BP is also undergoing deep cuts, with 7,000 employees—more than 5% of its global staff—set to be laid off. CEO Murray Auchincloss has framed the move as a necessary step to rebuild investor confidence and streamline operations. BP’s restructuring comes on the heels of disappointing earnings and a stalled transition plan that has faced criticism from both shareholders and environmental groups.
Shell, meanwhile, is scaling back its oil and gas exploration workforce by 20%, following earlier reductions in its renewables and low-carbon divisions. The company is pivoting toward more profitable upstream assets while reassessing its long-term energy strategy. Shell’s leadership has emphasized the need to remain agile in a rapidly changing market, where geopolitical tensions and regulatory shifts are reshaping investment priorities.
In Asia, Malaysian state-owned energy firm Petronas is retrenching 10% of its workforce, with over 5,000 jobs affected. The decision reflects mounting pressure from falling crude prices, rising operating costs, and the need to invest in clean energy alternatives. Economists note that Petronas is facing declining output from aging oil fields and must now allocate more capital toward renewables and automation to remain competitive.
The layoffs are not limited to these giants. Companies like ConocoPhillips, Halliburton, and Equinor have also announced significant reductions, citing similar pressures. Industry-wide, the job cuts are expected to exceed 50,000 positions by the end of 2025, with ripple effects across subcontractors, service providers, and regional economies.
Experts warn that the restructuring may lead to long-term shifts in employment patterns, with fewer traditional oilfield jobs and more demand for roles in data science, engineering automation, and environmental compliance. The transition is being driven not only by market forces but also by investor demands for sustainability and efficiency.
While the layoffs are painful, many analysts view them as part of a necessary evolution. The energy sector is undergoing a transformation, and companies that adapt quickly may emerge stronger and more resilient. For workers, however, the path forward remains uncertain, as the industry redefines itself in the face of climate imperatives and technological disruption.