Suncor Energy to reduce staff by up to 15% over the next year and a half

0
155


Suncor Energy said on Friday it will cut its workforce by nearly 15% over the next year and a half, as the company grapples with the impact of the economic collapse caused by the global pandemic.Spokesman Sneh Seetal said staff were briefed by company CEO Mark Little via an internal webcast on Friday morning. The first tranche of job cuts, or around five percent of the workforce, will come in the next six months, she said.

Seetal said the company is already in a process of improving its cost structure that would have resulted in a reduction in the workforce over time, but current events have changed the schedule.

“Unfortunately, the unprecedented drop in oil prices, the continued impact of the global pandemic, an economic slowdown as well as continued market volatility have accelerated these plans,” she said.

“And as a result, over the next 12 to 18 months, we will reduce the size of our workforce by about 10 to 15 percent. ”

Seetal was unable to say how many people these cuts would affect, but noted that at the end of 2019, the Calgary-based company had 13,000 employees.

Suncor employs people across the country, in the United States and internationally. Seetal said everything is under review.

“We review all operations, all of our assets, all of our offices across our workforce, with the exception of not making any decisions that could potentially have a safe and reliable impact… the operation of our assets,” he said. she declared.

According to the Canadian Association of Petroleum Producers (CAPP), more than 28,000 direct jobs and 107,000 indirect jobs were lost in the sector in 2020.

Due to the industry’s large supply chain, these job losses have impacted all regions of the country, the association said.

“The reality of the current situation is grim and is taking its toll on the industry and on Canadians,” CAPP CEO Tim McMillan said in a statement.

Alberta Premier Jason Kenney called the news of Suncor’s layoff plans “very disturbing.”

“Today’s announcement by Suncor underscores that what is happening in Alberta today is nothing short of an economic emergency,” said Kenney.

He said Alberta is facing the biggest economic crisis since the Great Depression due to a global economic contraction that is leading to the “biggest drop in energy prices in history.”

« In more than five difficult years, it’s hard to overestimate the economic adversity so many Albertans are going through, ”said Kenney, who called on Ottawa to work with the province to get the industry“ back on its feet ”.

Kenney said the federal government should “hit the pause button” on the clean fuel standard, which he says will make Canada’s energy sector uncompetitive globally.

“As today’s announcement highlights, this is truly a jobs crisis and an economic emergency, and it deserves a response here in Alberta in the same way as would be the case in Ontario or Quebec, ”he said.

However, Alberta NDP Leader Rachel Notley attacked the Kenney government’s decision to cut taxes on corporations like Suncor on Friday, pointing to the job losses that have since followed.

“Jason Kenney got a bad deal,” Notley said in a statement.

“Instead of looting money from the back of a truck to fund company layoffs, the Prime Minister and his PCU must come up with a plan to ensure job creation and job protection. “

LEAVE A REPLY

Please enter your comment!
Please enter your name here