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.”