Imperial Oil job cuts come amid wider tech-enabled efficiency push in energy industry
Global News
Imperial Oil's announcement that it's cutting hundreds of jobs is the latest in a long list of industry layoffs, driven by low oil prices, new technology and unfavourable policies.
Imperial Oil’s plans to cut 20 per cent of its workforce by the end of 2027 comes as part of a wider trend of industry job cuts as producers look to boost efficiencies amid lower oil prices and the availability of new technology.
The company said in its Monday announcement that about 900 corporate positions would be lost, mostly in Calgary.
It follows Cenovus Energy Inc. confirming layoffs in May, and Suncor Energy Inc. cutting about 1,500 staff in a streamlining push in 2023.
“I think (Imperial’s move is) probably reflective of a broader push by energy companies to find efficiencies,” said Lance Mortlock, EY Canada managing partner in industrials and energy.
He said efforts to streamline operations come amid languishing oil prices, technological availability and unfavourable policies.
“We’ve had a number of problematic policies and regulations that have made investment and growth in our oil and gas sector extremely difficult,” he said.
“When you have an economic and a policy environment that pushes investors away, the focus then shifts to, OK, I’m not going to grow the asset, how do I sweat the asset?”
Many of those policies have been aimed at limiting emissions of the oil and gas sector to address climate change, but Mortlock said he still hopes to see a better balance struck between environmental and economic priorities.
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