Suncor Plan to Slash Workforce Adds to Canada’s Oil-Sands Woes

(Bloomberg) -- Suncor Energy Inc., Canada's biggest oil-sands producer, will trim 10% to 15% of its workforce in the next 18 months, joining a long list of energy companies in Alberta that have announced layoffs following a collapse in fuel demand due to the virus.

Suncor had already been preparing for a smaller workforce but the planned cuts, which could affect as many as 2,000 employees, were accelerated after the Covid 19 pandemic contributed to a collapse in oil prices, Sneh Seetal, spokeswoman, said by phone.

Staff reductions won't be limited to any geographic area or part of the company, she said. Suncor will slash about 5% of its workforce in the next six months. Employees were informed earlier Friday of the plans.

Energy companies in Alberta, the Canadian province that holds the world's third-largest oil reserves, started cutting jobs after oil prices first plunged in 2014. The pandemic, which spurred drillers to shut in more than a million barrels a day of production, has only worsened the situation. In recent months, companies including TC Energy Corp. and Ovintiv Inc. have announced staff changes.

©2020 Bloomberg L.P.