In a dramatic shift that sent ripples through Canada’s energy sector this week, Imperial Oil announced plans to slash its workforce by approximately 20% before the end of 2027. The Calgary-based petroleum giant, majority-owned by U.S. oil major ExxonMobil, revealed the restructuring strategy will affect roughly 900 positions across its Canadian operations.
“This is about positioning Imperial for sustained success in an evolving energy landscape,” said Brad Corson, Imperial’s Chairman and CEO, during an investor call Tuesday. “While these decisions are never made lightly, they reflect the competitive realities we face and our commitment to maintaining operational excellence.”
The cuts will primarily target corporate and administrative roles, with the company emphasizing that frontline production workers will be largely unaffected. Imperial, which currently employs approximately 4,500 people across Canada, plans to implement these reductions gradually through a combination of attrition, early retirement packages, and outright layoffs.
Industry analysts point to multiple factors driving Imperial’s decision, including ongoing digital transformation initiatives, market volatility, and pressure to maintain competitive shareholder returns. The company’s stock responded positively to the announcement, climbing 2.3% by midday trading.
For Alberta’s oil sector, already weathering years of employment uncertainty, this represents another significant blow. Since 2014, Canada’s energy industry has shed over 40,000 jobs, according to Statistics Canada data, with technological automation and efficiency measures consistently reducing workforce requirements.
“The timing is particularly challenging given the broader economic pressures facing Canadian households,” noted Emma Richardson, energy economist at the University of Calgary. “While these corporations need to remain competitive, there’s a real human cost that extends beyond the immediate job losses.”
Imperial’s announcement follows similar workforce reduction plans from other energy majors, including Suncor’s 2023 announcement to trim approximately 1,500 positions. The trend signals a fundamental restructuring of Canada’s oil and gas employment landscape as companies pivot toward leaner operations.
Labor unions representing energy workers expressed immediate concern. “These companies continue posting record profits while cutting Canadian jobs,” said Terry Whalen, regional representative for Unifor. “We’re demanding Imperial provide comprehensive transition support and reconsider the scale of these cuts.”
Imperial defended its strategy as essential for long-term sustainability, pointing to a $720 million investment in its Kearl oil sands facility and commitment to carbon reduction initiatives as evidence of its continued investment in Canadian operations.
For affected communities, particularly in Alberta, the economic repercussions extend far beyond direct job losses. Each oil sector position supports approximately four additional jobs in the broader economy, according to CO24 Business research published last quarter.
As Canada navigates the complex balance between energy transition goals and maintaining its resource economy, Imperial’s restructuring plan raises profound questions about the future of work in a traditionally stable sector now facing unprecedented change.
Will this restructuring ultimately strengthen Imperial’s competitive position, or does it signal deeper challenges facing Canada’s energy industry? The answer will unfold over the coming years as both workers and investors watch closely.
