Suncor trims 1,000 jobs after merger
Last Updated: Thursday, September 3, 2009 | 6:41 PM ET
CBC News
Suncor Energy's CEO Rick George (left) shakes hands with Petro-Canada's CEO Ron Brenneman on a March 2009 merger deal to create Canada's largest oil company. (CBC) Suncor Energy Inc. expects to shed 1,000 jobs by next month as a result of the company's recent merger with Petro-Canada, the firm reported Thursday.
The Calgary-based company said last March that it would save $300 million in operating expenditures and $1 billion in capital expenditures annually following the merger with Petro-Canada.
"Unfortunately, bringing two large businesses together has also meant that some of the efficiencies are necessarily through workforce reductions," said Suncor's president and CEO Rick George. "It’s been difficult, but we've said from the start that this would be the case and worked hard to keep employees informed and to move quickly to build the new organization."
In a statement issued Thursday, Suncor said it expects about 1,000 people will leave the company by mid-October through layoffs, retirements and discontinuation of contract positions. "The majority of these layoffs have already occurred and Suncor has committed to inform employees of their status, including movement into new jobs and confirmation of existing positions, by mid-September," the company said.
Most of the job losses among the 13,000 employees will be contract positions and head office jobs in human resources and IT, a spokesman said. "At this point most people have either been offered a new role in the organization or confirmed in their existing role," said Suncor spokesman Brad Bellows. "Or if they're leaving the organization they know that as well. Most people that are leaving have already left."
Suncor and its U.K. subsidiary have proposed that responsibility for managing the company’s international and offshore business will move to Calgary from London. "This proposal and resulting staffing decisions are subject to a consultation period of up to 90 days as required by United Kingdom legislation."
“We expect the benefits of this merger to become increasingly clear to our shareholders, business partners and Canadians,” the company said.
The merger with Petro-Canada closed on Aug. 1.
Suncor says it has been reviewing its portfolio of potential growth projects to determine the best opportunities and optimal timing of projects to be developed based on expected rates of return, near-term cash flow potential and business risk.
