Suncor Energy Inc.’s logo is shown at the company’s annual meeting in Calgary on April 27, 2017.THE CANADIAN PRESS/Jeff McIntosh

Suncor Energy Inc.’s logo is shown at the company’s annual meeting in Calgary on April 27, 2017.THE CANADIAN PRESS/Jeff McIntosh

Suncor Energy says it will cut 10-15% of its workforce over next 18 months

The Calgary-based company had 12,889 staff at the end of 2019

Oilsands and retail fuel giant Suncor Energy Inc. says it will eliminate as many as 1,930 jobs over the next 18 months as a result of cost-cutting to deal with low oil prices and market volatility.

CEO Mark Little told employees on a conference call Friday morning the company will aim to reduce total staff by 10 to 15 per cent over the next 18 months, starting with a five per cent cut over the next six months, spokeswoman Sneh Seetal said.

The Calgary-based company had 12,889 staff at the end of 2019. Five per cent would equate to 644 positions and 15 per cent would equal 1,933.

“A few years ago we began to fundamentally change how we work, taking advantage of improved data technology, business processes, all with a view to improve our overall cost structure, accelerate free cash flow and strengthen our competitive position,” said Seetal, referring to what was dubbed the “Suncor 4.0” program.

“We always anticipated this transformation would result in a smaller workforce over time and one example … is the implementation of the autonomous haul trucks (driverless trucks employed at Suncor’s oilsands mines).

“That said, the unprecedented drop in oil prices, the continued impact of the global pandemic and economic slowdown, as well as continued market volatility, have accelerated those plans.”

The cuts are to be made across the entire organization, Seetal said, and will also affect Suncor’s ranks of contracted workers, although she was unable to provide those numbers.

Employees will be offered voluntary severance, early retirement and may potentially be redeployed if their jobs are eliminated, she said.

“What’s happening in Alberta today is nothing less than an economic emergency,” said Alberta Premier Jason Kenney at a news conference on Friday.

“The government of Canada would be moving heaven and earth if we saw layoffs of this scale in the central Canadian manufacturing industry.”

He called on Ottawa to “hit the pause button” on implementing a clean fuel standard opposed by many in the oil sector, as well as delaying ratifying the UN declaration on the rights of Indigenous people because of its potential creation of uncertainty for oilpatch investors.

“It is unfortunate to hear of additional job losses in the industry. The reality of the current situation is grim and taking a toll on the industry and on Canadians,” said Tim McMillan, CEO of the Canadian Association of Petroleum Producers.

CAPP, which estimates more than 28,000 direct and 107,000 indirect jobs have been lost in the sector so far this year, says the federal government should implement a plan for national economic recovery that includes taking advantage of an expected recovery in global oil and gas demand.

The news comes a few days after Royal Dutch Shell announced it would eliminate between 7,000 and 9,000 jobs worldwide by the end of 2022, a move expected to potentially result in 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 cope with the impact of the pandemic.

Suncor put projects on hold and cut its 2020 capital budget by $1.5 billion to a range between $3.9 billion and $4.5 billion in March to deal with lower oil prices.

At the time, a spokeswoman said the cutbacks would result in fewer jobs for contract workers and could “potentially” hit employees as well.

Suncor’s operations include oilsands development and upgrading, offshore oil and gas production, petroleum refining and retail fuel sales under the Petro-Canada banner.

Suncor shares rose on the Toronto Stock Exchange by as much as 2.6 per cent to $15.91 on Friday but remained at about one-third of their 52-week high of $45.12.

–with a file from Bob Weber in Edmonton

Dan Healing, The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta has 3,651 active cases of COVID-19.  (File photo)
750 new COVID-19 cases identified in Alberta Sunday

Central zone currently has 1,182 active cases of the virus

The Pfizer-BioNTech vaccine deliveres to Canada are being delayed because of complications at their European distribution facility. THE CANADIAN PRESS/Nathan Denette
Delays of Pfizer vaccine delivery to impact Alberta’s vaccination plans

Alberta has administered 74,000 doses of the COVID-19 vaccine so far

Alberta Chief Medical Officer of Health Dr. Deena Hinshaw
Alberta eases some COVID-19 restrictions

Salons, barbershops and other personal and wellness services will be open by appointment only

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

A passer by walks in High Park, in Toronto, Thursday, Jan. 14, 2021. This workweek will kick off with what’s fabled to be the most depressing day of the year, during one of the darkest eras in recent history. THE CANADIAN PRESS/Chris Young
‘Blue Monday’ getting you down? Exercise may be the cure, say experts

Many jurisdictions are tightening restrictions to curb soaring COVID-19 case counts

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
COVID-19: Provinces work on revised plans as Pfizer-BioNTech shipments to slow down

Anita Anand said she understands and shares Canadians’ concerns about the drug company’s decision

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

(Via the Canadian Press)
Alberta monolith comes with message to save eastern slopes of Rocky Mountains

‘They deserve our attention. They warrant our protection. They are under threat’

blessing
Bentley Blessing Pantry continues to faithfully serve the community

‘We just wanted to make everyone aware that we are still here to serve you throughout this coming year.’

A Suncor logo is shown at the company’s annual meeting in Calgary on May 2, 2019. A worker is missing after a dozer broke through ice on an inactive Suncor tailings pond in northern Alberta.THE CANADIAN PRESS/Jeff McIntosh
Worker missing after dozer breaks through frozen tailings pond in northern Alberta

The worker was an employee of Christina River Construction

File Photo
‘You took away some real joy,’ Sylvan Lake Winter Village turned off after vandalism

Sometime during the night of Jan, 12 the light display at the pier was vandalized and damaged

Most Read