The upcoming layoffs are part of a restructuring plan
Imperial Oil (Imperial) is set to reduce its workforce by 20% by the end of 2027, according to BNN Bloomberg.
Serving as part of a restructuring plan that also entailed a consolidating existing site activity, the firm’s move will lead to the loss of an estimated 1,000 jobs, based on data from LSEG Data & Analytics, which showed that Imperial had 5,100 employees by the end of 2024.
John Whelan, the firm’s chairman, president, and chief executive officer, stated that the restructuring plan, which is projected to reduce annual expenses of $150 million by 2028, was important for the future of the company.
“Leveraging the rapidly advancing technology environment and the growth of global capability centres, this restructuring plan advances our long-standing strategy of maximizing the value of our existing assets,” said Whelan.
According to the firm, it is anticipating a one-time restructuring charge worth $330 million before tax in Q3 2025 due to the changes. Meanwhile, corporate guidance will remain unchanged and is positioned to either meet or exceed its medium-term production and unit cost targets for its operations in Kearl and Cold Lake.
With the workforce reduction inevitably affecting employees and their families, Whelan assured that the company recognizes this and is committed to providing support for them as the restructuring plan commences.
Alberta Premier Danielle Smith expressed her disappointment over Imperial’s plan and shifted the blame towards Ottawa, according to Calgary Journal.
“The industry for the last 10 years has been hampered and hobbled by federal government decisions. This is what happens when you have uncertainty and this is part of the reason why we have to work very quickly to get to a resolution with Ottawa so that we can start building again,” said Smith.
“If we can realize the aspiration of building our pipelines north, south, east and west, doubling our production, then there’s a lot of opportunity for people to get re-employed in this sector,” she added.
Last August, Imperial saw a $11.23 billion in total revenue and other income during Q2 2025, which was a notable decrease from the $13.38 billion recorded in Q2 2024.
