Royal oil to cut 900 jobs, mostly will leave Calgary
Calgary -based Imperial Oil says it will expire 20 percent of its workforce by the end of 2027.
This would mean about 900 jobs, most of which are in Calgary, will be lost. In a statement by CBC News, the company spokesman Lisa Schmit said that most of the remaining Calgary posts would be shifted to the Stratchona Refinery in Edmonton at the end of 2028.
“We are planning to maintain a small appearance in Calgary,” he said.
According to its 2024 annual report, the Imperial Oil had 5,100 regular employees by the end of that year. Has been the main office of Imperial Is located in Calgary Since 2004.
“We recognize the impact on our employees and their families of this restructuring. We are committed to support our employees through this transition.”
Imperial began operations in the Calgary Refinery in 1923.
Spend money to save money
The news came in a media release on Monday afternoon, in which the company said that it would result in the decision as a result of the decision “adequate efficiency and effectiveness benefits”.
“As part of this change, Imperial will further consolidate activities on its operating sites, increase cooperation, operational focus and execution excellence,” says the release.
Imperial says it expects to spend approximately $ 330 million to cover the cost of restructuring.
The company estimates that it will reduce annual expenses by $ 150 million by 2028 as a result of changes.
Imperial reported that its net income during its most recent quarter was $ 949 million, below $ 1.13 billion a year ago.
Energy Minister ‘deeply disappointed’
Federal Energy Minister Tim Hodgson said he was “deeply disappointed” by reorganization.
“These are skilled, dedicated people who have contributed a lot to Alberta’s energy sector and Canada’s economy,” he said on social media.
Hodgson said that the federal government “is laser-centered on building new major energy projects, supporting energy workers and unlocking new export markets for their resources to become an energy superpower.”
Fellow Richard Mason, executive Fellow Richard Mason at the University of Calgary School of Public Policy, said there is a possibility of “Comment on Oil Market or Imperial’s approach in Canada” more about a big trend about trying to be more efficient by taking advantage of technology. “
“The cost in this business is always decreasing,” he said. “So this is nothing outside the normal. It is just a big lump at a time.”
The implementation of artificial intelligence can be a factor, Mason said.
“I think everyone is probably looking for ways that they can apply artificial intelligence and get the most value for it,” he said. “And if so, it is a big step.”
