Imperial Oil Layoffs Spark Concerns in Alberta and Ottawa
Imperial Oil's plan to lay off approximately 20% of its workforce by 2027 has drawn criticism from both the Alberta government and the federal government. The planned cuts, impacting roughly 1,000 jobs, have raised concerns about the future of the energy sector and the Calgary economy.
Alberta Premier Blames Federal Policies
Alberta Premier Danielle Smith attributed the layoffs to federal government policies, stating that the industry has been "hampered and hobbled" for the past decade. She emphasized the need for a resolution with Ottawa to enable pipeline construction and increased production.
"This is what happens when you have uncertainty, and 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..." - Danielle Smith, Alberta Premier
She believes that expanding pipeline infrastructure to the north, south, east, and west could create re-employment opportunities in the sector.
Imperial Oil's Restructuring Plan
Imperial Oil announced that the layoffs are part of a broader restructuring plan aimed at saving approximately $150 million annually. Company chairman John Whelan stated that the restructuring will ensure the company continues to deliver returns and value for shareholders.
The company also plans to consolidate activities to its operating sites in Alberta and sell its multi-building Calgary office complex, leasing back the necessary space. Lisa Schmidt, a company spokesperson, confirmed that Imperial plans to maintain a presence in Calgary.
Federal Government's Response
Federal Energy Minister Tim Hodgson expressed his disappointment with the layoffs and stated that the government is working to understand the decision and support affected workers.
"These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and Canada’s economy, and my thoughts are with them and their families as they receive this difficult news," - Tim Hodgson, Federal Energy Minister
Hodgson emphasized the government's commitment to ensuring the prosperity of energy companies like Imperial and working towards making Canada an "energy superpower."
Opposition Leader Calls for Action
Alberta Opposition NDP leader Naheed Nenshi described the layoffs as "a significant blow to Calgary and Alberta’s economy." He urged Premier Smith to develop a plan to retain good-paying jobs in Alberta, particularly given the province's high unemployment rate.
Financial Context
In August, Imperial reported $11.23 billion in total revenue and other income during the second quarter, a decrease from $13.38 billion in the same quarter the previous year.
| Organization | Statement/Action |
|---|---|
| Imperial Oil | Announced restructuring plan including layoffs to save $150 million annually. |
| Alberta Government (Danielle Smith) | Blamed federal policies and called for pipeline construction. |
| Federal Government (Tim Hodgson) | Expressed disappointment and pledged support for affected workers. |
| Alberta NDP (Naheed Nenshi) | Called for a plan to retain jobs in Alberta. |
