Imperial Oil, headquartered in Calgary, has announced a workforce reduction of 20% by the end of 2027, leading to the elimination of approximately 900 jobs, with a significant impact on Calgary employees. The company plans to relocate most of the remaining Calgary positions to the Strathcona Refinery in Edmonton by late 2028 while maintaining a reduced presence in Calgary.
Imperial Oil, which had 5,100 regular employees by the end of 2024, has been based in Calgary since 2004. The restructuring is expected to result in enhanced efficiency and cost savings, with the company investing around $330 million in restructuring costs but anticipating an annual expense reduction of $150 million by 2028.
Federal Energy Minister Tim Hodgson expressed deep disappointment over the job cuts, emphasizing the contributions of the affected employees to Alberta’s energy sector and the Canadian economy. He reiterated the government’s commitment to supporting energy workers and advancing major energy projects to boost Canada’s energy industry.
Richard Masson, an executive fellow at the University of Calgary School of Public Policy, suggested that the restructuring reflects a broader industry trend towards leveraging technology for increased efficiency rather than being solely driven by market conditions. The integration of artificial intelligence is seen as a potential driving factor in the company’s strategic realignment.
