Murphy Oil makes 'significant' job cuts worldwide, including Alberta

Murphy Oil is making "significant" job cuts across its worldwide operations, including its office in Calgary, the company confirmed Friday.

Company expects to trim CEO compensation to $7.1M, down from $12.1M, in response to 'challenging environment'

Murphy Oil has a 5% stake in the Syncrude oilsands venture and also operates the Seal heavy oil project in Northern Alberta. (Jeff McIntosh/Canadian Press)

Murphy Oil is making "significant" job cuts across its worldwide operations, including its office in Calgary, the company confirmed Friday.

"We've reduced head count across all functions and in every location," said spokeswoman Kelly Whitley, who declined to say exactly how many people will be laid off in total.

"We're still in the process and there's still actions happening today and next week," she said.

The Arkansas-based company, which has global operations including oil plays in Northern Alberta and an office in Calgary, employed 1,258 people as of the end of 2015.

Its other Canadian interests include offshore oil operations in Newfoundland and natural gas extraction in British Columbia.

Whitley said Murphy Oil expects to reduce its capital spending by 75 per cent in 2016 compared to the year before, and the jobs cuts will be spread across the entire operation.

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"It's in direct response to the negative impacts of low commodity prices and our lower capital spending that we have for this year," she said.

CEO expected to take $5M pay cut

The company is also looking to adjust its executive compensation, striking a committee to review salary and bonuses and seek "better alignment with stockholder expectations regarding pay for performance," according to its 2016 proxy statement.

The statement says that CEO Roger Jenkins will have his base salary frozen at $1.3 million and his targeted annual bonuses and long-term incentives reduced to an estimated $5.8 million, for a total direct compensation of $7.1 million in 2016.

That's down from $12.1 million in 2015.

"The company recognizes the collapse in oil prices created a challenging environment for the Murphy organization and its stockholders, and the committee believes that its recent decisions and adjustments to executive compensation will better position the organization for aligning pay with performance in fiscal year 2016," the statement reads.