Calgary-based Imperial Oil says it will be eliminating 20 per cent of its workforce by the end of 2027.
That will mean approximately 900 jobs, most of which are in Calgary, will be lost. In a statement to CBC News, company spokesperson Lisa Schmidt said most of the remaining Calgary positions will be relocated to the Strathcona Refinery in Edmonton in late 2028.
“We plan to maintain a small presence in Calgary,” she said.
According to its 2024 annual report, Imperial Oil had 5,100 regular employees by the end of that year. Imperial’s head office has been located in Calgary since 2004.
“We recognize the considerable impact this restructuring will have on our employees and their families. We are committed to supporting our employees through this transition,” said Schmidt.
Imperial began operations at the Calgary refinery in 1923.
Spending money to save money
The news came in a media release Monday afternoon, in which the company said it will realize “substantial efficiency and effectiveness benefits” as a result of the decision.
“As part of this change, Imperial will further consolidate activities to its operating sites, enhancing collaboration, operational focus and execution excellence,” the release says.
Imperial says it expects to spend approximately $330 million to cover the costs of the restructuring.
The company anticipates it will reduce annual expenses by $150 million by 2028 as a result of the changes.
Imperial reported its net income was $949 million during its most recent quarter, down from $1.13 billion a year earlier.
Energy minister ‘deeply disappointed’
Federal Energy Minister Tim Hodgson said he was “deeply disappointed” by the restructuring.
“These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and to Canada’s economy,” he said on social media.
Hodgson said the federal 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.”
Richard Masson, executive fellow at the University of Calgary School of Public Policy, said the restructuring is likely “more about a bigger trend about trying to be more efficient by taking advantage of technology” than “a comment on the oil market or Imperial’s outlook in Canada.”
“Costs are always being reduced in this business,” he said. “So it’s nothing out of the normal. It’s just a rather big lump all at one time.”
The implementation of artificial intelligence may be a factor, Masson said.
“I think everybody is probably looking for the ways they can implement the artificial intelligence and get the most value for it,” he said. “And if that’s what this is, that’s a pretty big step.”
