NEW YORK (AP) — Energy company ConocoPhillips says it is cutting around 1,810 jobs, or 10% of its jobs, following a plunge that took oil prices to their lowest levels in years.
The biggest proportion of the job cuts will be in North America, the company said Tuesday. ConocoPhillips plans to eliminate more than 500 jobs in Houston, where it is based.
In a news release, ConocoPhillips said it’s making the cuts because the energy industry is in a “dramatic downturn.”
ConocoPhillips has already cut 1,000 jobs this year and had 18,100 employees June 30.
Oil prices have plunged because of a supply glut that built up as production increased and growth in the global economy was slower than expected. The health of China’s economy, the second-largest in the world, is a dominant concern. In response to falling oil prices almost all energy companies have either cut spending on exploration or cut jobs, often both, and many have seen big drops in their stock prices.
ConocoPhillips said in July that it lost $179 million in the second quarter because of the drop in oil prices. It said it was preparing for a period of lower and more volatile prices and also pared its spending forecasts. The company said Tuesday it is reducing spending and paring back deep water exploration work, but job cuts were also needed to make it stronger and more competitive.
ConocoPhillips stock declined $1.64, or 3.3%, to $47.51 in afternoon trading as the markets slumped. The company’s shares have fallen 42% over the last year and are trading at their lowest prices in almost five years.
U.S. oil is trading around six-year lows. After a big three-day rebound, the price of U.S. oil fell 8% Tuesday to close at $45.41 on weak manufacturing data from China.