Enbridge sheds 1,000 jobs after takeover of Spectra Energy
Enbridge completed takeover of Spectra in late February
Enbridge Inc. said Wednesday it is cutting about 1,000 jobs, or six per cent of its staff, following the completion of its takeover of Spectra Energy Corp of Houston, Texas.
In a statement to CBC News, Enbridge said the cuts are taking place across the combined company, which had a workforce of roughly 17,000 prior to the announcement of the job cuts.
"After a careful evaluation, Enbridge has taken the difficult but necessary step to address the overlap in the combined company's organizational structure," Enbridge spokesperson Todd Nogier said in a release.
"These workforce reductions are only one component of the synergies we expect to achieve over the coming months as we fully integrate our companies," Nogier said.
A source familiar with the story said half of the cuts are vacancies and the majority of employee layoffs are taking place in Houston, where Spectra Energy was headquartered.
Shares of Enbridge gained 1.8 per cent on the TSX, rising 98 cents to close at $55.10.
- Enbridge buying Spectra Energy for $37B in stock to create pipeline giant
- More Canadian energy companies likely to buy up U.S. assets, analyst says
- Enbridge cuts 5% of workforce, including 370 jobs in Canada
The Enbridge takeover of Spectra was unveiled in September 2016. At the time, the all-stock deal was valued at $37 billion. Enbridge said then that it expected to achieve about $540 million in annualized operational savings, most of it to be achieved in the latter part of 2018.
Enbridge said in late February, just days prior to the completion of the takeover, that the merged company would be the largest energy infrastructure company in North America. Spectra owned natural gas and oil pipelines and storage facilities in both Canada and the United States.
The merged firm's head office is based in Calgary, while its gas pipeline business is based in Houston, and its liquids pipelines business is based in Edmonton.
With files from Kyle Bakx, Reuters