Calgary-headquartered Imperial Oil has announced plans to reduce its workforce by 20% by the end of 2027, resulting in the loss of around 900 jobs, predominantly in Calgary. Lisa Schmidt, a spokesperson for the company, revealed that the majority of the remaining Calgary roles will be shifted to the Strathcona Refinery in Edmonton by late 2028, with a commitment to maintain a limited presence in Calgary.
Imperial Oil, which had 5,100 regular employees as of its 2024 annual report, has had its headquarters in Calgary since 2004. Schmidt acknowledged the significant impact of the restructuring on employees and families, emphasizing the company’s dedication to assisting staff during the transition. The company initiated operations at the Calgary refinery back in 1923.
In a recent media release, Imperial Oil stated that the restructuring would lead to substantial efficiency and effectiveness benefits. The company plans to consolidate activities at its operating sites to enhance collaboration, operational focus, and execution excellence. The restructuring is estimated to cost approximately $330 million, with an expected reduction of $150 million in annual expenses by 2028.
Although Imperial Oil reported a decrease in net income in the latest quarter, Federal Energy Minister Tim Hodgson expressed deep disappointment over the job cuts, highlighting the valuable contributions of the affected workers to Alberta’s energy sector and the Canadian economy. Hodgson reaffirmed the government’s commitment to supporting energy workers and advancing major energy projects to boost Canada’s position as an energy powerhouse.
Richard Masson, an executive fellow at the University of Calgary School of Public Policy, suggested that the restructuring reflects a broader trend towards leveraging technology for efficiency gains rather than solely being driven by market conditions. He emphasized that cost reduction is a common practice in the industry and speculated that the adoption of artificial intelligence could be a significant factor in the restructuring process.
