Cenovus to cut 20-25% of workforce
Cenovus Energy Inc plans to cut 20-to-25 per cent of its workforce after it acquires Husky Energy Inc, the companies said on Tuesday, as Cenovus begins to slash costs in the Canadian oil patch’s biggest merger in nearly four years.
The job losses could total about 2,150, based on the size of their workforces, including contractors. Most will be in Calgary, Alta., Husky said in a statement.
Cenovus and Husky confirmed the job cuts after two sources told Reuters of the magnitude of the reductions.
Cenovus and Husky shares extended their gains after the Reuters report, rising as much as 8.5 and 7.9 per cent respectively.
Pandemic lockdowns have hammered fuel demand globally and added to woes for Canada’s oil sands producers, who have struggled since the previous price crash in 2014.
In the United States, Chevron Corp will lay off about 25 per cent of Noble Energy’s employees who joined the oil major after its $4.1 billion purchase this month, the company said on Tuesday.
It was not clear when the Cenovus cuts would take effect.
“As with any merger of this type, there will be overlap and there will be some difficult decisions as we work to create a combined organization best positioned for the future,” Husky spokeswoman Kim Guttormson said.
Cenovus spokesman Reg Curren also confirmed the cuts.