Suncor and Petro-Canada, two energy giants that announced in March they were merging into one company, have started handing out layoff notices to senior vice-presidents.

The pink slips are part of the process to streamline operations and have nothing to do with the current state of the economy, said Petro-Canada spokeswoman Victoria Barrington.

The process began at the top executive level in May and is now moving down through the ranks.

"These are both complex organizations, and it's a complex process in order to bring the two together," she explained. "We start with leadership, so it's a staged process."

She said the layoffs don't take effect until the blockbuster merger deal closes, which is expected on Aug. 1.

After that date, all staff will find out about their status within six weeks.

The merged company will be Canada's largest energy producer, worth more than $43 billion.