Experts says layoffs part of broader global trend in oil and gas sector
Calgary-based Imperial Oil has announced it will eliminate 20 per cent of its workforce by the end of 2027, with most of the positions based in Calgary.
The company says the cuts are part of a broader restructuring plan aimed at increasing efficiency and reducing annual expenses by $150 million by 2028.
Imperial Oil stated in a release that the restructuring will centralize additional corporate and technical activities in global business and technology centres, leveraging its relationship with major shareholder ExxonMobil.
“The changes are designed to fully leverage globally available expertise to maximize the benefits of current technology and accelerate the cost-effective deployment of new technologies that drive value and enhance financial resilience,” it said.
Imperial expects to spend about $330 million to cover the costs of the restructuring, which amounts to roughly 900 jobs, according to the CBC.
Impact on employees and Calgary
Imperial Oil acknowledged the significant impact of the layoffs.
“We recognize the considerable impact this restructuring will have on our employees and their families. We are deeply committed to supporting our employees through this transition,” said John Whelan, chairman, president and CEO.
CBC reports that most of the remaining Calgary positions will be relocated to the Strathcona Refinery in Edmonton in late 2028, although the company plans to maintain a small presence in Calgary.
Layoffs in oil and gas sector
The announcement drew immediate political responses. Alberta Premier Danielle Smith called the layoffs “very disappointing,” blaming federal government decisions for creating uncertainty in the industry, according to CBC: “The industry for the last 10 years has been hampered and hobbled by federal government decisions.”
Alberta NDP Leader Naheed Nenshi attributed the job losses to provincial government policies, while federal Energy Minister Tim Hodgson expressed disappointment and said the government would explore ways to support affected workers, CBC reports.
Industry experts said the layoffs are part of a broader global trend in the oil and gas sector.
“This is obviously extremely painful for Calgary and extremely painful for Canada, but this is part of a much broader … series of layoffs,” said Heather Exner-Pirot, director of energy, natural resources and environment at the Macdonald-Laurier Institute, in the CBC article.
Charles St-Arnaud, chief economist with Alberta Central, also said the industry is maturing and that efficiency drives are reducing head counts globally.
“The name of the game for the past decade has been how to drive efficiency out of current operations, and that's what we've seen. [Companies have] been cutting costs and those job losses go into that vein.”
ExxonMobil announces global job cuts
Imperial Oil’s parent company ExxonMobil also announced it would lay off 2,000 workers globally as part of a long-term restructuring plan, Global News reports.
ExxonMobil employed 61,000 people globally at the end of 2024.
ExxonMobil said in a press release that it is reorganizing its business in Europe, centralizing the majority of EU employees at key locations. Across the region, ExxonMobil intends to bring the majority of office and home-based employees closer to manufacturing sites in countries such as Germany and Italy, and will close a number of smaller offices.
The company anticipates a reduction of roughly 1,200 positions across the EU and Norway by the end of 2027, including around 600 redundancies.
“We’re proud of our 135-year history in Europe. The European market is important to us, and we will continue to have a meaningful presence here. The business and regulatory environment in Europe is challenging and this transformation will help us compete into the future,” said ExxonMobil Europe President Philippe Ducom.
ExxonMobil said the changes are intended to make its European business competitive and efficient for the future, reflect the evolving needs of the business, and deliver value to shareholders. The company cited regulatory complexity and high costs in the EU as factors making the region less attractive for global investments.
