CALGARY C Husky Energy Inc. confirmed another wave of layoffs Tuesday, because the company shrinks its headcount so that they can survive sub-$30 oil prices.
Oilpatch employees in Calgary began calling the second day of the work week “Termination Tuesday” over the course of 2015, as major oil and gas firms trimmed staff as oil prices fell.
Husky, among the largest gas and oil producers headquartered in Calgary, confirmed Tuesday that it had let go staff, but didn’t provide detail on the number of people impacted by the cuts.
Related
- As politicians gloat about climate ‘leadership,’ Saudi Arabia’s oil is dumped in CanadaOil prices tumble 7% as fears of record high U.S. stockpiles growCanadian energy companies selling off ‘jewels within the crown’ to help keep oilsands operations afloat
-
-
-
“These take time and effort decisions and we will still go ahead and take steps necessary to ensure the company’s resilience through this cycle and beyond,” company spokesperson Mel Duvall said in an email, adding that the layoffs were spread all through Husky’s operations.
Last year, Husky cut 1,400 jobs from its operations, accounting for about 22 percent of its workforce.
While Husky wouldn’t confirm how many staff had been affected this week, social media users claiming to become laid-off Husky employees and contractors said 500 people were cut.
The company has cut spending, tried to grind down its costs and laid off staff in an attempt to survive the prolonged oil price rout, which has now extended for 25 months.
In December, Husky president and CEO Asim Ghosh told the Financial Post the company is in discussions to sell its midstream assets in Western Canada in addition to the non-core assets it said hello would sell last October.
He called the current oil price environment, and also the decision by OPEC states to continue producing oil without a quota, “uncharted territory.”
The West Texas Intermediate benchmark oil price fell to US$27.94 per barrel Tuesday.
The confirmation of more layoffs at Husky be major oil and gas producers announce their fourth quarter results, which many analysts have said will be “ugly.”
Last week, Suncor Energy Inc. president and CEO Steve Williams said during an earnings call that his company had cut 1,700 quickly the course of 2015. Suncor, the biggest integrated energy company in Canada, posted a $2-billion net loss in your fourth quarter.
Husky is expected to report its fourth quarter results on Feb. 26.
gmorgan@nationalpost.com
Twitter.com/geoffreymorgan
