employee layoffs – Ft McMurray's Homepage

Employee Layoffs are Expected to Save Cenovus Energy Roughly $100 Million

Cenovus Energy has announced that their employee layoffs in the last year are starting to pay off due to cost savings in the amount of $400 million dollars and oilsands productivity that increased by 17%. These cost cutting savings have had a high price tough, and the company said that by the end of this year the number of staff layoffs will have reached 700. The percentage of workers lost will be around 24% of the entire workforce for the company. The 700 staff laid off is on top of the roughly 800 layoffs announced earlier in the year, and this round of layoffs mostly impacted contractors who worked with the energy company. A statement released by the business said that cuts to staff are largely complete.

Cenovus Energy President and CEO Brian Fergusn discussed the employee layoffs, saying “We’ve made difficult, but necessary decisions to help us remain financially resilient. It’s important that the size of our workforce matches our more moderate approach to oilsands growth and our reduced cash flow in a lower commodity price environment. We’ve realized substantial, substantial cost reductions, maintained capital discipline and strengthened our balance sheet. We will continue to look for additional opportunities to reduce costs, become more efficient and enhance shareholder value.” The entire Wood Buffalo area has been affected by declining oil prices and a slowing economy and Cenovus Energy is no different. The decision to lay off staff and contractors was a difficult but necessary choice if the company wants to stay competitive and control expenses.

Employee Layoffs at Shell Albian Sands Announced

Shell Albian Sands announces employee layoffs, saying the company will reduce the number of employees by up to 300 by March of 2015. The layoffs are the result of falling oil prices, and the company has announced their intention to reorganize their oilsands operations. According to Shell Albian Sands spokesperson Simone Marler “It’s no secret the oilsands industry has been facing challenges for some time. Recent oil prices have added to that pressure. We’ve been making tough choices along the way.” Employees who are laid off will be considered for other positions within the organization. Marler told reporters that “Any decision that affects our employees is something we do not take lightly. We recently had a look at our organization, and like with any company, we are always reviewing areas of our business to remain competitive.”

The recently announced employee layoffs at Shell Albian Sands are no surprise to oil industry insiders. The company has recently faced criticism over expanding the Jackpine mine, and critics have included environmental groups, First Nation groups, and Metis. According to one source “An approval with conditions by the regulator is not a final investment decision. That doesn’t mean we have made the final investment decision to do that expansion.” Gil McGowan, the president of the Alberta Federation of Labour, has expressed sympathy for those affected by the employee layoffs at Shell Albian Sands. McGowan told the media “If Shell is losing money in other parts of the world, they should deal with those operations accordingly. They should not punish Alberta, where there is still money being made despite the drop in oil. At the very least, they should consider less draconian measures like hiring freezes as opposed to outright layoffs.”