Imperial Oil Announces Major Restructuring: 900 Jobs Cut, Calgary Relocations
Imperial Oil Ltd. has announced significant changes, including layoffs and relocations, due to falling oil prices. The company plans to cut 20% of its workforce by the end of 2027, affecting approximately 900 positions, mostly in Calgary. The restructuring is expected to cost around $330 million before-tax in the third quarter of 2025.
The layoffs come as the price of West Texas Intermediate (WTI) oil has dropped due to increased production in Iraq and an expected rise in OPEC+ output. Imperial's chairman, John Whelan, acknowledged the impact on employees and their families. Despite the changes, Imperial's corporate guidance for 2025 remains unchanged, with the company still expecting to meet or beat its medium-term production and unit cost targets for Cold Lake and Kearl operations.
Following the layoffs, Imperial will consolidate activities to its operating sites. Most remaining Calgary positions are set to relocate to the Strathcona Refinery in Edmonton by the second half of 2028. The company's Canadian headquarters will maintain a presence in Calgary after the sale and leaseback of some Quarry Park space. Alberta Opposition NDP leader Naheed Nenshi criticized the announcement, blaming Premier Danielle Smith for not ensuring good quality jobs stay in the province.
The restructuring is expected to reduce annual expenses by about $150 million by 2028. Imperial Oil, which owns and operates the Kearl oil sands mine and Cold Lake oil sands operation, as well as a 25% stake in the Syncrude Canada joint venture project, aims to streamline its operations. Most remaining employees are scheduled to be relocated from Calgary to Edmonton by mid-2025.
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