Alberta Premier Danielle Smith expressed disappointment over Imperial Oil’s decision to reduce its workforce by approximately 20% by 2027, attributing the action to federal government policies and emphasizing the necessity of pipeline construction. Smith highlighted the potential for job opportunities in the sector through expanding production via pipeline projects in various directions.
Imperial Oil, headquartered in Calgary, announced the layoffs as part of a broader restructuring initiative aimed at saving around $150 million annually. The company plans to cut approximately 900 positions, primarily in Calgary, with most of the affected employees being relocated to the Strathcona Refinery in Edmonton by late 2028.
Imperial Oil’s Chairman, John Whelan, stated that the restructuring and job cuts are essential for the company’s financial performance and shareholder value. The company intends to leverage technology and its association with Exxon Mobil to maintain or surpass production targets.
While Smith blamed Ottawa for the situation, Alberta NDP Leader Naheed Nenshi attributed the responsibility to the UCP government, citing policies that have led to economic challenges in the province. Energy Minister Tim Hodgson expressed disappointment over the job cuts and pledged to assist the affected workers.
The layoffs at Imperial Oil are part of a broader global trend in the oil and gas industry, with several major companies implementing workforce reductions to manage costs amidst lower profits and competitive market conditions. Industry experts emphasize the importance of driving efficiency and cost-effectiveness in operations to sustain the sector’s health and competitiveness.
