The Imperial Strathcona refinery near Edmonton in 2021. The Calgary-based oil company said it expects to save $150-million per year through a restructuring of its workforce.Todd Korol/Reuters
Imperial Oil Ltd. IMO-T will cut its workforce by 20 per cent by the end of 2027, the company said Monday, partly by consolidating activities across its operations.
The Calgary-based oil company said it expects to save $150-million each year as a result of the restructuring. While its corporate guidance remains unchanged, Imperial said the changes would help it increase production and lower operating costs.
Imperial said it would use a “rigorous transition process” in the restructuring, which it expects to cost roughly $330-million before tax in the third quarter of 2025.
“Leveraging the rapidly advancing technology environment and the growth of global capability centres, this restructuring plan advances our long-standing strategy of maximizing the value of our existing assets,” John Whelan, Imperial’s chief executive officer, said in a statement.
The company said it is well positioned to meet or beat its medium-term production and unit cost targets for Kearl and Cold Lake.
Mr. Whelan said in August he was encouraged by discussions with the federal government regarding support for energy industry projects, as the company posted a fall in its quarterly profits.
Imperial reported its net income was $949-million during its second quarter, down from $1.13-billion a year earlier.
Earnings per share amounted to $1.86 on a diluted basis, compared with $2.11 during the same period last year. It reported $11.23-billion in total revenue and other income during the quarter, down from $13.38-billion during the same quarter last year.