Cost-cutting and layoffs continue in Canada’s oil and gas sector. Last week, ExxonMobil Corp announced plans to reduce its Canadian workforce by 300 positions. Citing the COVID-19 driven price slump, ExxonMobil reported they will reduce positions at Imperial Oil, ExxonMobil Canada and at its ExxonMobil Business Centre Canada.
According to the company, the workforce reductions are the result of insight gained through reorganizations and work-process changes made over the past several years. The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the efficiency work, they said. The company’s U.S. head office already announced massive cuts of more than US$10 billion earlier this year in a move to help reverse the negative trend.
Imperial Oil confirmed its plans to furlough 200 of its 6,000 workers in a move to cut costs in the face of a market downturn. This move mirrors Suncor’s announcement that it plans to shrink its cohort by 15% over the next year and a half.