While an economic recovery is underway in the oil sands, one company is slashing its workforce to cut costs.
Cenovus Energy Inc. says it is planning to cut about 15 per cent of its workforce as it looks to reduce costs next year.
According to Canadian Press, the company says it expects to find savings in areas such as drilling performance, development planning and optimized scheduling of oil sands well start-ups.
The cuts come as Cenvous says it plans between $1.5 billion and $1.7 billion in capital spending next year, mostly in the oil sands.
That compares with its guidance for capital spending this year of $1.55 billion to $1.65 billion.
Cenovus chief executive Alex Pourbaix says the company’s priorities for 2018 are to reduce costs and deleverage its balance sheet while maintaining capital discipline.
The company expects to reduce its per-barrel oil sands operating costs by 8 per cent next year and per-barrel oil sands sustaining capital costs by 12 per cent compared with its 2017 forecast.
Cenovus, which has been under investor pressure to justify its $17 billion deal to buy ConocoPhillips assets, brought in Pourbaix as CEO in November.
As of November 15, Cenovus had raised just under $4 billion out of a targeted $4 billion to $5 billion to pay down the debt it took on to fund the ConocoPhillips deal.