Imperial Oil Plans 20% Workforce Reduction by 2027

**Imperial Oil Plans 20% Workforce Reduction by 2027** Imperial Oil Ltd. announced plans to reduce its workforce by 20% by the end of 2027 as part of a significant corporate restructuring initiative. The Calgary-based company aims to achieve annual savings of $150 million by 2028 through this plan. The restructuring will involve consolidating corporate and technical activities into global business and technology centers. This strategy is intended to enhance efficiency and leverage the company's relationship with its majority owner, Exxon Mobil Corp. John Whelan, chairman and CEO of Imperial, stated, "Leveraging the rapidly advancing technology environment and the growth of global capability centres, this restructuring plan advances our long-standing strategy of maximizing the value of our existing assets." He acknowledged the impact of these changes on employees and emphasized the company's commitment to supporting them during the transition. The restructuring is expected to incur a one-time charge of approximately $330 million in the third quarter of 2025. Imperial, which operates major oilsands projects in northern Alberta, including Kearl and Cold Lake, also has significant refining operations in Alberta and Ontario. As of the end of 2024, Imperial employed about 5,100 people. The company is well-positioned to meet or exceed its production targets at its Kearl and Cold Lake sites, despite the anticipated job cuts. The decision to cut jobs comes amid a broader trend of workforce reductions in the oil and gas sector. Other companies, such as Cenovus Energy Inc. and ConocoPhillips, have also announced layoffs recently. Richard Masson, an executive fellow at the University of Calgary’s school of public policy, noted that while layoffs often reflect industry challenges, this move appears to be more focused on cost-cutting. Masson remarked, "The oil market has been relatively strong. Imperial has been very profitable. They’ve got good assets. They’re going to continue to produce lots of revenue for years to come. It’s really about, as technology is moving so quickly, how do you make sure you take advantage of it to reduce your costs, to stay competitive?" Imperial's shares have performed well, gaining about 35% over the past year, outperforming other major oil sands producers. The company continues to focus on enhancing operational efficiency as it navigates the evolving market landscape.