OTTAWA — Canada’s Energy Minister Tim Hodgson says he is “deeply disappointed” by Imperial Oil’s announcement that it plans to cut roughly 20 per cent of its workforce by 2027, a move expected to affect about 1,000 jobs.
Imperial Oil, headquartered in Calgary, confirmed the layoffs on Monday as part of a broader restructuring plan it says will save the company approximately $150 million annually. Chairman John Whelan said the changes, which include consolidating operations at sites in Alberta, are aimed at ensuring long-term shareholder value. “We recognize the considerable impact this restructuring will have on our employees and their families,” Whelan said, pledging that Imperial remains committed to supporting staff through the transition.
Minister Hodgson said the decision is troubling, particularly given the skill and dedication of the workers affected. “These are skilled, dedicated people who have greatly contributed to Alberta’s energy sector and Canada’s economy, and my thoughts are with them and their families as they receive this difficult news,” he said in a statement posted on social media. He added that the federal government will work to understand what went into Imperial’s decision and explore ways to support displaced workers.
The announcement comes as Imperial faces declining revenues, reporting $11.23 billion in total revenue and other income in the second quarter of this year, compared with $13.38 billion during the same period in 2024.
Alberta Opposition NDP Leader Naheed Nenshi called the company’s plan “a significant blow to Calgary and Alberta’s economy,” urging Premier Danielle Smith to present a strategy to retain good-paying jobs in the province. Alberta continues to struggle with one of the highest unemployment rates in the country.
Minister Hodgson emphasized that the federal government remains focused on strengthening the Canadian energy sector. “We are taking steps today to ensure the Canadian energy sector will continue to provide careers and prosperity for generations to come,” he said, underscoring Ottawa’s goal of positioning Canada as a global energy superpower.