ConocoPhillips Cuts 12.5% of North Slope Workforce as Oil Prices Fall

ConocoPhillips confirmed layoffs affecting up to 12.5% of its North Slope workforce in September, impacting workers at the Kuparuk, Alpine, and Willow oil fields. The cuts followed the company's merger with Marathon Oil, after which it announced global workforce reductions of 20% to 25%.

A ConocoPhillips spokesperson said the company worked to limit North Slope cuts to about half the global rate.

The layoffs affected workers across the three fields on Alaska's North Slope, primarily in Prudhoe Bay and surrounding areas. In March, 243 employees at the three fields filed a petition with the National Labor Relations Board to join the United Steelworkers union, citing concerns over staffing, safety, and pay.

ConocoPhillips said it is cooperating with the NLRB regarding a union election.

A University of Alaska Anchorage economist attributed the layoffs to declining oil prices driven by high OPEC output and industry volatility. The economist characterized the workforce reductions as a standard industry response to volatile oil prices rather than unique facility issues.

Some North Slope workers posted on social media about the personal toll. One North Slope oil worker posted that facility issues contributed to layoffs and prompted consideration of relocation out of Alaska. A former North Slope employee described how the cuts forced changes to daily routines and prompted discussions about leaving the state. However, there is no evidence of mass relocation, and workers retain the option to vote on unionization amid ongoing operations.

The North Slope fields employ workers who typically rotate between two-week shifts on the slope and time off in communities including Anchorage and Fairbanks.

The NLRB petition covers workers at all three fields. The agency will oversee the union election process, which allows employees to vote on whether to join the United Steelworkers.

ConocoPhillips operates as the largest oil producer on Alaska's North Slope, with production across multiple fields in the region.