Alberta Premier Danielle Smith expressed disappointment over Imperial Oil’s decision to reduce its workforce by approximately 20% by 2027, attributing the situation to federal government actions and emphasizing the necessity of pipeline construction. Smith highlighted the industry’s challenges stemming from past government choices and advocated for expanding pipeline infrastructure to boost employment opportunities in the sector.
Imperial Oil, headquartered in Calgary, announced plans to cut about 900 jobs as part of a larger restructuring initiative, aiming to achieve annual savings of $150 million. The majority of the job losses will impact Calgary. Chairman John Whelan stated that the restructuring and layoffs are crucial for maintaining the company’s financial performance and delivering value to shareholders.
The company intends to leverage technology and its partnership with major shareholder Exxon Mobil to meet production targets. Additionally, Imperial plans to relocate most remaining Calgary positions to the Strathcona Refinery in Edmonton by late 2028. Smith underscored the urgency of resolving issues with Ottawa to facilitate pipeline development.
In response to the layoffs, Alberta NDP Leader Naheed Nenshi criticized the UCP government, alleging policies detrimental to the province’s economy. Energy Minister Tim Hodgson expressed disappointment with the job cuts and pledged support for affected workers. The government aims to understand the factors influencing Imperial Oil’s decision and explore avenues to assist impacted employees.
The global trend of oil companies downsizing was noted, with Exxon Mobil planning to lay off 2,000 workers worldwide. Industry experts highlighted the broader context of cost-cutting measures amid challenging market conditions. The restructuring initiatives by Imperial and other energy firms aim to enhance competitiveness and operational efficiency while sustaining production levels and financial stability.
