Canada’s energy minister says he’s “deeply disappointed” with Imperial Oil‘s plan to lay off roughly 20 per cent of its workforce by 2027.
Tim Hodgson says he’s working to understand what went into the company’s decision and that the government will explore ways to support the workers losing their jobs.
“These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and Canada’s economy, and my thoughts are with them and their families as they receive this difficult news,” Hodgson said on social media Tuesday.
Calgary-based Imperial said Monday the cuts are part of a broader restructuring plan and would save the company about $150 million annually.
Company chairman John Whelan said in a statement the restructuring and layoffs will ensure Imperial continues to deliver returns and value for shareholders.
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“We recognize the considerable impact this restructuring will have on our employees and their families,” Whelan said.
“We are deeply committed to supporting our employees through this transition.”
The company also said part of the restructuring will see Imperial “further consolidate activities to its operating sites” in Alberta.
Data from LSEG Data and Analytics shows the layoffs would impact about 1,000 jobs, based on an employee count of 5,100 as of Dec. 31, 2024.
In August, Imperial reported $11.23 billion in total revenue and other income during the second quarter, down from $13.38 billion in the same quarter a year earlier.
Hodgson said it’s his mission to make sure energy companies like Imperial stay prosperous as the government works to make Canada an “energy superpower.”
“We are taking steps today to ensure the Canadian energy sector will continue to provide careers and prosperity for generations to come,” he said.
Alberta Opposition NDP leader Naheed Nenshi said Monday the company’s plan represents “a significant blow to Calgary and Alberta’s economy.”
Nenshi called on Premier Danielle Smith to develop a plan to keep good paying jobs in the province, especially with Alberta’s unemployment rate being one of the highest in Canada.
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