ConocoPhillips is cutting jobs in Canada. It is the latest in a series of workforce reductions at the oil and gas producer since its acquisition of Marathon Oil.
The Houston-based company told staff on Monday that the reduction, which includes both employees and contractors, would take place on Tuesday. It did not say how many jobs were affected. ConocoPhillips had about 9,900 employees worldwide, according to its 2025 annual report.
A company spokesperson said ConocoPhillips routinely reviews its organization to align with its long-term strategy, operate safely and efficiently, and remain well positioned for future opportunities.
The company announced last year that it would cut 20% to 25% of its global workforce in a restructuring to simplify operations and reduce costs after the Marathon deal. It said at the time that most reductions would be made before 2025, with the reorganization expected to be completed in 2026.
There’s no indication that ConocoPhillips faces any claims over the cuts. But workforce reductions are among the most common sources of employment disputes for any employer, especially when they happen at short notice.
In Canada, the main risk comes from wrongful dismissal claims. Under common law, employees dismissed without cause are generally entitled to reasonable notice, or pay in lieu of notice, which can be considerably more than the minimum set out in provincial employment standards. Courts look at factors such as age, length of service, the type of role and how easily the employee can find similar work. Disputes over the size of severance packages are frequent, particularly for senior and long-serving staff.
Group terminations bring extra obligations. Provinces including Alberta, where much of Canada’s oil and gas industry is based, require employers to give advance notice to the government when they cut a large number of jobs at one site within a short period. Employers that cut contractors also face the risk that some will argue they were employees in practice, entitled to the same notice and severance.
Claims of discrimination are another risk. Former employees may argue they were selected for layoff because of age, disability or other protected grounds, leading to human rights complaints alongside civil lawsuits.
Employment practices liability insurance (EPLI) covers defense costs and damages for claims including wrongful dismissal, discrimination and harassment. Take-up among Canadian mid-sized employers remains well below that of US companies, partly because Canadian awards have historically been lower.
Brokers should make one key limitation clear to clients. Most EPLI policies don’t cover severance or notice pay that an employer is contractually or legally required to pay. They respond to the cost of defending a claim and to damages awarded beyond those obligations. Employers that assume EPLI will pay for a restructuring are likely to be disappointed.
For brokers with mid-sized and large corporate clients, especially in sectors under cost pressure such as energy, the ConocoPhillips cuts are a timely opening to review employment practices cover before any restructuring, not after. Claims arising from a layoff that has already happened may fall outside a newly purchased policy, depending on its retroactive date and prior-knowledge exclusions.
Brokers should check limits against the size of the workforce, whether the policy includes cover for human rights complaints and third-party claims, how contractor disputes are treated, and whether defense costs erode the limit. Advising clients to consult employment counsel before making cuts also reduces the chance of a claim in the first place.
