Alberta Premier Danielle Smith expressed disappointment over Imperial Oil’s decision to reduce its workforce by approximately 20% by 2027, attributing the situation to federal government actions and emphasizing the necessity of constructing pipelines. Smith highlighted the potential for job opportunities in the sector if production is doubled through pipeline development.
Imperial Oil, headquartered in Calgary, announced the layoffs as part of a larger restructuring plan aimed at saving around $150 million annually. The move will lead to the loss of about 900 positions, primarily in Calgary. The company plans to shift most remaining Calgary roles to the Strathcona Refinery in Edmonton by late 2028.
Imperial Oil’s chairman, John Whelan, stated that the restructuring aims to enhance shareholder value and returns. The company plans to leverage technology and its association with major shareholder Exxon Mobil to maintain or exceed production targets.
In response to the layoffs, Alberta NDP Leader Naheed Nenshi blamed the UCP government for policies that he believes have contributed to the current situation. Meanwhile, Canada’s energy minister, Tim Hodgson, expressed disappointment with the planned job cuts and pledged to support affected workers.
This downsizing at Imperial Oil is part of a broader global trend in the oil and gas industry, with major companies like Exxon Mobil implementing significant workforce reductions. Industry experts note that the sector is evolving to drive efficiency and profitability, leading to restructuring efforts and job losses worldwide.
The oil and gas industry is transitioning to a more mature phase, focusing on cost efficiency and profitability. As companies adapt to this new landscape, the sector continues to undergo changes to remain competitive amid evolving market conditions.