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Cenovus targets 20 to 25 per cent workforce reductions following Husky takeover

October 27, 2020
By The Canadian Press

CALGARY — Cenovus Energy Inc. is aiming to cut as many as one in four jobs — potentially more than 2,000 workers — if it succeeds in its $3.8-billion friendly takeover of rival Husky Energy Inc.

In an email, Cenovus spokesman Reg Curren says it aims to trim between 20 and 25 per cent of the 8,600 employees and contractors currently working at the two companies.

That would equate to between 1,720 and 2,150 workers, with Curren adding most of the cuts are expected to take place in Calgary where both companies have headquarters.

It’s the latest blow to the Calgary-centred oilpatch after Suncor Energy Inc. announced three weeks ago it will cut as many as 1,930 jobs over 18 months to reduce total staff by 10 to 15 per cent.


Job cuts are also expected in the Canadian operations of Royal Dutch Shell, which announced in September it would eliminate between 7,000 and 9,000 jobs worldwide by the end of 2022, and, to a lesser extent, from BP, which said in June it would cut around 10,000 jobs from its global workforce.

The cuts could make worse Calgary’s downtown office vacancy rate, which climbed to 28.7 per cent as of the end of September from 27 per cent in June according to real estate firm CBRE.

“As with any merger of this type, there will be overlap and there will be some difficult decisions as we work to create a combined organization best positioned for the future,” Curren said.

“The estimate is that the reductions will be approximately 20 to 25 per cent of the combined workforce, which is currently about 8,600 employees and contractors.”

Under the proposed all-stock transaction announced Sunday, Cenovus shareholders would own 61 per cent of the combined company and Husky shareholders would own 39 per cent.


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