Imperial Oil says it will cut around 20 percent of its workforce by the end of 2027 in a major restructuring.
“I am deeply disappointed to learn of Imperial Oil’s decision to lay off hundreds of workers in Calgary. These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and to Canada’s economy,” Hodgson wrote.
Imperial Oil says the restructuring will save the company around $150 million per year by 2028 and increase efficiency and competitiveness. The company also noted there will be a “one-time restructuring charge of approximately $330 million before-tax in the third quarter of 2025.”
The changes are part of a broader restructuring by the company’s majority owner, Exxon Mobil Corp.
Imperial Oil’s CEO John Whelan said the company understands the layoffs will be difficult and Imperial Oil is “deeply committed” to provide support through the process.
The Calgary-based energy company produces crude oil and natural gas from oil sands at Kearl and Cold Lake in Alberta, along with running refineries in Alberta and Ontario and supplying fuel via Esso and Mobil gas stations. The company also holds a 25 percent ownership stake in the Syncrude Canada oil sands joint venture.
In its news release, Imperial Oil said its 2025 outlook remains unchanged and said it expects to hit production targets at Kearl and Cold Lake.
Imperial’s announcement of layoffs follows an overall downturn in the oil market, including ConocoPhillips announcing earlier this month that it will be cutting up to 25 percent of its workforce to counterbalance rising costs. It also comes as West Texas Intermediate crude oil hit just over US$62 per barrel (CA$87) on Sept. 30. Prices are projected to potentially fall further after this week’s OPEC+ meeting, where producers are expected to green-light increased output.
