Another Alberta oil company must cut and lay off workers to deal with low oil prices and market volatility
Suncor employees were told on Friday morning that projects would be canceled and the company would lay off between 10 and 15 percent of its workforce over the next year and a half
Spokeswoman Sneh Seetal said CEO Mark Little told employees on a conference call that the cuts will start with a 5% cut over the next six months
The Calgary-based company had 12,889 employees at the end of 2019 5% would equate to 644 positions and 15% would equate to 1,933
« A few years ago, we began to fundamentally change the way we work, leveraging data technology and improved business processes, all with the goal of improving our overall cost structure, d ‘accelerate free cash flow and strengthen our competitive position, « said Seetal, referring to what has been dubbed the » Suncor 4Program 0 «
« We have always anticipated that this transformation would result in a reduction in the workforce over time and one example … is the implementation of autonomous transport trucks (driverless trucks employed in oil sands mines). by Suncor)
« That said, the unprecedented drop in oil prices, the continued impact of the global pandemic and economic downturn, as well as continued market volatility, have accelerated these plans »
The cuts must be made organization-wide, Seetal said, and will also affect the ranks of Suncor’s contract workers, although it has not been able to give those numbers
Employees will be offered voluntary severance pay, early retirement and could potentially be redeployed if their jobs are cut, she said
« Today Suncor announced plans to lay off up to 15% of its workforce. We estimate this could affect up to 2,000 Albertans
« My heart goes out to all those touched by this terrible news, to their families, to those workers who are very anxious about what the future holds for them and their families »
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Kenney says Bills C-48 and C-69 « damaging Alberta »; bring the referendum on equalization closer
Kenney said there was a national jobs crisis and an economic emergency He urged the federal government to respond in the same way it would if the challenged companies were based in Ontario
He stressed that the energy crisis and the difficult times facing Albertans must be taken more seriously by Ottawa
“Since the very beginning of the COVID crisis, I have been clear that this is the biggest economic crisis since the Great Depression… leading to the biggest drop in energy prices in the world. ‘history, after five difficult years,’ said Kenney
He described Suncor as one of Canada’s largest companies and one of the largest producers of energy
« In March, before COVID, the price of WTI benchmark oil was above $ 70 In mid-April, the futures market, Western Canada Select, was trading at – $ 30 – a drop of $ 100 from oil price «
In March, Suncor put projects on hold and cut its 2020 capital budget from $ 1.5 billion to a range of $ 3.9 billion to $ 4.5 billion to deal with falling oil prices
The Prime Minister said Canadian oil companies had « hemorrhaged cash » and said the Suncor news was very « sad, but probably inevitable »
« We must all come together as Albertans to support our neighbors in any way we can
« I sincerely believe that while tough months are still looming and many more will feel the impact of this global recession here in Alberta, I believe, I know, that together we will be successful and come out more. strong Kenney said
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Shell’s plan to cut up to 9,000 jobs could result in hundreds of fewer jobs in Canada
In March, Suncor put plans on hold and cut its 2020 capital budget from $ 1.5 billion to a range between $ 3.9 billion and $ 4.5 billion to deal with falling oil prices due to an oil glut on the market and the impact of the COVID-19 pandemic
At the time, a spokeswoman said the cuts would reduce the number of jobs for contract workers and could « potentially » affect employees as well.
Suncor’s businesses include oil sands development and upgrading, offshore oil and gas production, petroleum refining, and retail fuel under the Petro-Canada banner
The news comes days after Royal Dutch Shell announced it would cut between 7,000 and 9,000 jobs globally by the end of 2022, a move that is expected to potentially lead to hundreds of job losses among its 3,500 workers in Canada
In June, BP, which has a smaller workforce in Canada, said it was cutting around 10,000 jobs from its global workforce to deal with the impact of the pandemic
« Suncor has received over $ 1 billion of UCP’s $ 4 billion in corporate documents and they’re not hiring, they’re firing
« Every day new evidence shows Jason Kenney has failed to create jobs and grow the economy Instead of shoveling money in the back of a truck to fund layoffs companies, the Prime Minister and his PCU must develop a plan to guarantee job creation and job protection »
Suncor
World News – CA – Suncor Energy to lay off 10-15% of its workforce in the next 15 years
