Imperial Oil Ltd.\u00a0announced plans on Monday to lay off 20 per cent of the company\u2019s employees by the end of 2027.<\/p>\n
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Imperial Oil had about 5,100 employees as of the end of 2024, according to a regulatory filing, but so far there\u2019s no word on exactly how many people will lose their jobs or how the\u00a0 company\u2019s Canadian operations will be affected.<\/p>\n
Imperial owns and operates the Kearl oil sands mine north of Fort McMurray and Cold Lake oil sands operation in northern Alberta, as well as a 25 per cent stake in the Syncrude Canada oil sands joint venture project.<\/p>\n
In a news release that was long on corporate speak and short on specifics, the company said the restructuring plans are \u201cconsistent with Imperial\u2019s strategy to maximize value, using technology and leveraging the company\u2019s relationship with ExxonMobil.\u201d<\/p>\n
U.S.-based ExxonMobil has a majority ownership stake in the Calgary-based producer of crude oil, diluted bitumen, and natural gas.<\/p>\n
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Imperial expects the cost of the restructuring to total approximately $330 million before-tax in the third quarter of 2025.\u00a0It also expects the changes to reduce annual expenses by about $150 million by 2028.<\/p>\n
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While the company did not say how many employees will lose their jobs, Imperial\u2019s chairman, president and CEO John Whelan said \u201cWe recognize the considerable impact this restructuring will have on our employees and their families. We are deeply committed to supporting our employees through this transition.\u201d<\/p>\n
Alberta Opposition NDP leader Naheed Nenshi said the announcement is a significant blow to Calgary and Alberta\u2019s economy at a time when the province has one of the highest unemployment rates in Canada.<\/p>\n
\u201cHundreds of families will be affected with ripple effects throughout their communities, he said, going on to cast blame towards Premier Danielle Smith. \u201cHow will she ensure that good quality jobs stay in the province? Making threats and being angry has clearly failed.\u201d<\/p>\n
Imperial said its corporate guidance for 2025 is unchanged and the company still expects to meet or beat its medium-term production and unit cost targets for Cold Lake and Kearl operations.<\/p>\n
\n\t\t\t\t\tImperial Oil\u2019s Canadian headquarters are located in Calgary\u2019s Quarry Park neighbourhood.\t\t\t\t<\/span>
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The announcement by Imperial Oil comes on the heels of an announcement by ConocoPhillips in early September that it plans to cut its workforce by 25 per cent because of rising costs.<\/p>\n
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On Monday, the price of West Texas Intermediate (WTI), the benchmark North American oil price, closed down at under $67 per barrel.<\/p>\n
The falling price partially because of a increase in oil production in Iraq, where oil started flowing through a pipeline from the Kurdistan region to Turkey, for the first time in two-and-a-half years.<\/p>\n
Analysts say the price could drop even further following a meeting of OPEC+ this weekend, during which members are expected to agree to an increase in production.<\/p>\n
\u2014 With files from The Associated Press and Reuters<\/em><\/p>\n