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Marathon Oil Cuts 500 Houston Jobs Ahead of ConocoPhillips Takeover

Marathon Oil Corp. signage on the floor of the New York Stock Exchange (NYSE) in New York, US, on Friday, Dec. 29, 2023. A banner year for stocks is drawing to a close, with gains in big tech leaving the market near all-time highs amid the artificial intelligence exuberance and dovish Federal Reserve bets. Photographer: Michael Nagle/Bloomberg (Michael Nagle/Bloomberg)

(Bloomberg) -- Marathon Oil Corp. warned of a “mass layoff” involving more than 500 employees at its Houston headquarters as part of the $17 billion takeover by ConocoPhillips, according to state filings. 

The affected workers “may reasonably expect to experience a permanent loss of employment during the 12-month period” following closure of the transaction, Marathon said in a notice to the the Texas Workforce Commission released on Wednesday.

The date of the layoffs was listed in a state database as May 28, the day before the merger was publicly announced, although the full filing indicates the reductions are in may cases months away.  

“There will be a mass layoff at the Houston Facility wherein at least 500 employees will experience an employment loss,” the filing said.

ConocoPhillips expects to make $500 million in cost and capital savings in the first year of the takeover, which is expected to close during the current quarter. 

Marathon didn’t respond to a request for comment. A ConocoPhillips spokesperson referred inquiries to Marathon. 

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