Hundreds of workers at Husky Energy Inc. are believed to be affected by a round of layoffs at the Canadian energy giant, according to employees at the company.

Sources told BNN Bloomberg’s Tara Weber the layoffs are mostly focused on western Canadian staff, with the majority of cuts happening in Calgary.

“Today we did have to say goodbye to some of our colleagues. Husky has been taking steps to better align the organization and workforce with our capital plan and strategy,” said Husky Spokesperson Kim Guttormson in an emailed statement, while declining to confirm the number of jobs being cut.

One source said the layoffs were happening Tuesday morning. The human resources department at Husky booked multiple rooms at the Calgary headquarters for meetings from 7 a.m. until 2 p.m. local time, multiple sources said.

A spokesperson for Husky Energy told BNN Bloomberg on Monday the company doesn’t comment on rumours or speculation.

The cuts come at a time when Husky has been reducing capital spending in the wake of ongoing pressure facing the country’s energy sector.

In December, Husky took $300 million out of its 2019 capital spending budget to account for the impact of oil production curtailments and lower global oil prices.  And at its investor day in May, the company unveiled a new five-year plan that would see average annual capital spending fall to $3.15 billion, down 10 per cent per year from its previous 2018-22 plan.

Husky will release its third-quarter financial results on Thursday.

With files from Tara Weber