Cenovus Energy recently announced that the company planned on a capital spending decrease as well as cuts to jobs and dividends as they struggle to stay competitive with low oil prices and an economy that is still struggling. The announcement by Cenovus made it clear that the oil company is still struggling to keep their share of the market and the cost cutting measures are an attempt to make the business leaner s that it is more competitive in the current environment. The capital spending decrease means that the company will spend between $1.2 billion and $1.3 billion, which is between $200 million and $300 million less than Cenovus Energy planned to spend. There are also job cuts and cuts to dividends planned as well so that Cenovus can weather the current economic downturn and very low market prices for oil.

Cenovus Energy made the announcement about the capital spending decrease and the cuts which will be made, but the exact number of jobs affected and the extent of the dividend cuts are still under wraps. Last year there was a 24 percent reduction in the staff employed by the company but this move was not enough. The first quarter dividend for Cenovus Energy stock was reduced by 69% and this is just the start. If the business can not stay competitive while the economy is poor then it may not be around to see the economic rebound which will happen sooner or later. A statement from Cenovus Energy explained “The company is undertaking a thorough evaluation of all its staffing costs to align total compensation with the current business environment. This includes reassessing benefits, allowances and contractor rates.”