Imperial Oil to cut 20% of workforce by 2027 amid restructuring

Imperial Oil announced Monday a looming 20 per cent workforce reduction by 2027 and a major corporate shift from Calgary to Edmonton.

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Imperial Oil announced Monday a looming 20 per cent workforce reduction by 2027 and a major corporate shift from Calgary to Edmonton.

In a Monday press release, Imperial anticipates saving approximately $150 million in expenses by 2028, with “larger benefits expected over the longer term.” Despite the cuts, the company remains committed to meeting or exceeding production and cost targets.

However, a one-time restructuring cost of $330 million is expected due to the changes.

“Imperial remains committed to responsibly producing the energy and products Canadians rely on and supporting the communities where it operates,” said the company.

Alberta Premier Danielle Smith responded Monday to the 20 per cent cut, which resulted in about 900 jobs lost.

“I think it reinforces why it is we have to start building more pipelines and increasing production,” she said. “The industry for the last ten years has been hampered and hobbled by federal government decisions.”

Smith said if Alberta can start building pipelines in every direction, there are good opportunities for people to be re-employed in the sector.

“But this is what happens when you have uncertainty,” she said. “This is part of the reason why we have to work very quickly to get to a resolution with Ottawa so that we can start building again.”

She was not concerned about future industry prospects if the policy environment could be corrected.

“There’s an incredible future for people who want to be able to work in this sector, but it will require growth. And we only will get growth if we can address the nine bad laws that have been interfering with the investment climate and get some new pipelines built,” said Smith.

Energy Minister Tim Hodgson said he was “deeply disappointed” by the hundreds of layoffs.

“Canada’s new government is laser-focused on building new major energy projects, supporting energy workers, and unlocking new export markets for our resources so we can become 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.

One user in a thread on thelayoff.com predicted how the company’s assets would be shifted around. His first prediction was that Calgary Quarry Park HQ would be sold to Brookfield.

A spokesperson for Imperial told the CBC that most of the jobs in Calgary will be lost, with the remaining being moved to Edmonton in late 2028.

Despite the bad news for some Imperial employees, the premier will be joined by several provincial energy experts later today to announce a project to strengthen Canada’s energy infrastructure and drive future economic growth.