Imperial Oil has announced plans to reduce its workforce by nearly 20 per cent by the end of 2027, citing challenges in the global crude market. The company expects a potential supply glut to weigh on prices and is restructuring operations to stay competitive.
The changes involve consolidating activities at operating sites and sharpening focus on production efficiency. Imperial will take a one-time restructuring charge of about C$330 million ($237 million) before tax in the third quarter of 2025.
Around 900 jobs will be cut, most of them in Calgary. Imperial had about 5,100 employees at the end of 2024, according to industry data. The company projects annual expense savings of roughly C$150 million once the restructuring is complete by 2028.
The oil producer is confident that these measures will support its production targets for the *Kearl oil sands* mine and the Cold Lake site. The firm has already made progress in reducing upstream costs and aims for further savings in the coming years.
The job cuts come as the industry faces pressure from falling crude prices. Brent, the global benchmark, has declined nearly 10 per cent this year, and analysts warn of oversupply in the market. Cost efficiency has become a critical factor for producers looking to maintain investor confidence.
Imperial Oil, majority-owned by Exxon Mobil Corp., operates oil sands projects, refineries, and other assets across Canada. Despite industry headwinds, its shares have risen about 35 per cent over the past year, outperforming other major oil sands players.
The restructuring signals the company’s focus on long-term resilience as it adapts to changing commodity conditions and prepares for a leaner future.
Source – https://www.hrkatha.com/news/imperial-oil-to-cut-20-of-workforce-amid-market-pressures/