‘Deeply disappointed’: Ottawa reacts to Imperial Oil plan to cut 20% of Calgary workforce by end of 2027

Imperial Oil is planning to slash about 20 per cent of its workforce by the end of 2027 as part of a restructuring plan.

That would affect about 1,000 jobs, based on an employee count of 5,100 as of Dec. 31 of 2024, according to data from LSEG Data & Analytics.

Calgary-based Imperial said on Monday that the changes, which include consolidating existing site activity, should achieve a reduction in annual expenses of $150 million by 2028.

“Leveraging the rapidly advancing technology environment and the growth of global capability centres, this restructuring plan advances our long-standing strategy of maximizing the value of our existing assets,” said John Whelan, Imperial’s chairman, president and chief executive officer, in a statement.

“At the same time, these actions enhance our foundation for future growth and position us to continue delivering industry-leading returns and long-term value for our shareholders.”

The company said it anticipates recording a one-time restructuring charge of about $330 million before tax in the third quarter of 2025 as a result of the changes.

It also said its corporate guidance for the year is unchanged and it’s well positioned to meet or exceed its medium-term production and unit cost targets for its Kearl and Cold Lake operations in Alberta.

Whelan said the company recognizes the “considerable impact” the restructuring will have on employees and their families.

“We are deeply committed to supporting our employees through this transition,” he said.

‘Deeply disappointed’

Monday night, federal energy minister Tim Hodgson posted a statement on social media.

“I am deeply disappointed to learn of Imperial Oil’s decision to lay off hundreds of workers in Calgary,” Hodgson said. “These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and to Canada’s economy, and my thoughts are with them and their families as they receive this difficult news.

“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,” Hodgson said, continuing.

“We are taking steps today to ensure the Canadian energy sector will continue to provide careers and prosperity for generations to come.

“In a time of global upheaval, it is my mission to keep our energy and natural resources industries prosperous and productive.

“We are urgently working to better understand the factors behind the company’s decision and to explore ways to support affected employees during this difficult time.”

Alberta premier Danielle Smith addressed the announcement by Imperial at a Tuesday press conference.

“It’s very disappointing,“ Smith said. No one likes to see these kinds of consolidations especially in our energy sector. I think it reinforces why it is we have to start building more pipelines and increasing production.

“The industry for the last 10 years has been hampered and hobbled by federal government decisions,” she added, saying that “this is what happens when you have (regulatory) uncertainty.”

Smith called on Ottawa to address what she calls “the nine bad laws” that she says limit growth in the energy sector.

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.

With files from The Canadian Press

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