Alberta premier blames Ottawa for Imperial
Oil job cuts, but experts say it's a global trend
• CBC
SEPTEMBER 30, 2025"The industry for the last 10 years has been hampered and hobbled by federal government decisions," Smith said Tuesday.
"If we can realise the aspiration of building our pipelines north, south, east and west, doubling our production, then there's a lot of opportunity for people to be able to get reemployed in this sector."
Calgary-based Imperial said Monday the cuts are part of a broader restructuring plan and would save the company about $150 million annually.
Approximately 900 jobs, most of which are in Calgary, will be lost.
"This is what happens when you have uncertainty," Smith said. "And this is part of the reason why we have to work very quickly to get to a resolution with Ottawa so that we can start building [pipelines] again."
Imperial Oil chairman John Whelan said in a statement the restructuring and layoffs will ensure the company continues to deliver returns and value for shareholders.
"We recognize the considerable impact this restructuring will have on our employees and their families," Whelan said. "We are deeply committed to supporting our employees through this transition."
In a news release, Imperial said it is leveraging technology and its relationship with its major shareholder, Exxon Mobil, to continue to meet or exceed production targets.
The company also said part of the restructuring will see Imperial relocate most of the remaining Calgary positions to the Strathcona Refinery in Edmonton in late 2028.
While Smith points the finger at Ottawa, Alberta NDP leader Naheed Nenshi lays the blame on the UCP government.
"We've got a government that is pandering to separatists, that is scaring away domestic and foreign investment," he told CBC News.
"We now have the second… highest unemployment rate after Newfoundland in the country at a time where the energy sector is not really under threat from tariffs," Nenshi said.
"What we're really seeing here is a change and shift in the work and Alberta being left on the outside, and that is directly due to Danielle Smith and the UCP's policies, I believe."
Canada's energy minister, Tim Hodgson, also said he's "deeply disappointed" with Imperial Oil's planned job cuts.
He said he's working to understand what went into the company's decision and that the government will explore ways to support the workers losing their jobs.
"These are skilled, dedicated people who have greatly contributed to Alberta's energy sector and Canada's economy, and my thoughts are with them and their families as they receive this difficult news," he said on social media Tuesday.
In August, Imperial reported $11.23 billion in total revenue and other income during the second quarter, down from $13.38 billion in the same quarter a year earlier.
Hodgson said it's his mission to make sure energy companies like Imperial stay prosperous as the government works to make Canada an "energy superpower."
Oil company layoffs a global trend: experts
Top U.S. oil major Exxon Mobil announced broader cuts on Tuesday, with plans to lay off 2,000 workers globally — about half of which are accounted for in the Imperial Oil layoffs.
Heather Exner-Pirot, director of energy, natural resources and environment at the Macdonald-Laurier Institute in Ottawa, says this latest announcement is part of a global trend.
"This is obviously extremely painful for Calgary and extremely painful for Canada, but this is part of a much broader… series of layoffs," she said.
Heather Exner-Pirot, director of energy, natural resources and environment at the Macdonald-Laurier Institute, says the Imperial Oil layoffs are part of a broader global trend for the oil and gas sector. (Paula Duhatschek/CBC)
Several major energy companies, including Chevron and ConocoPhillips, have announced thousands of job cuts in the past year to rein in costs while they contend with lower profits in the face of a worldwide slump in crude oil prices and strong competition from the OPEC+ group of oil producers.
Another Calgary-based company, Cenovus Energy Inc., confirmed layoffs in May, while Suncor Energy Inc. cut about 1,500 staff in a streamlining push in 2023.
"What Exxon and Imperial are doing is trying to be the lowest cost barrel in the oilsands and also globally competitive, and so they aren't shutting in production. They have no intention of producing less oil," Exner-Pirot explained, calling the layoffs a "normal restructuring" from the corporation's perspective.
"That means the royalties keep coming in. It means the sector is healthy. It means Imperial stays healthy."
Charles St-Arnaud, chief economist with Alberta Central, FORMERLY ATB, says the oil and gas industry is no longer what it was in 2014, pre-boom, and so the number of people employed in the sector has also been impacted.
"The Canadian oil and gas sector doesn't live in [a] vacuum... without being influenced by what's happening around the world. It's not just in Canada that investment in the industry is weak. We're seeing that around the world," he said.
"The name of the game for the past decade has been how to drive efficiency out of current operations, and that's what we've seen. [Companies have] been cutting costs and those job losses go into that vein.
"It's really that drive to efficiency that is reducing the head count. How can you extract the same barrel at a lower cost?"
Charles St-Arnaud, chief economist with Alberta Central, says the oil and gas sector is maturing and decisions are being driven by efficiency.
(Justin Pennell/CBC)© Provided by cbc.ca
St-Arnaud says there's a need to start looking at the oil and gas sector with "a different mindset," understanding that it's a mature industry now.
"It's no longer what I would call the startup phase of the late 2000s, early 2010s, where companies were building massive operations, thinking huge amounts of money and they were not necessarily driven by how much it's gonna cost," he said.
"But now [in the] mature phase, you need to start thinking about the cost. How do you improve your profitability when you're at that kind of mature phase of your development? And that's really where I see the Canadian oil industry being at the moment."
St-Arnaud says there's a need to start looking at the oil and gas sector with "a different mindset," understanding that it's a mature industry now.
"It's no longer what I would call the startup phase of the late 2000s, early 2010s, where companies were building massive operations, thinking huge amounts of money and they were not necessarily driven by how much it's gonna cost," he said.
"But now [in the] mature phase, you need to start thinking about the cost. How do you improve your profitability when you're at that kind of mature phase of your development? And that's really where I see the Canadian oil industry being at the moment."
Canadian energy minister, Alberta premier disappointed with Imperial Oil job cuts
Story by Jack Farrell and Fakiha Baig
• SEPTEMBER 3O, 2O25
Tim Hodgson, Minister of Energy and Natural Resources, provides an update on the forecast for the 2025 wildfires season at the National Press Theatre in Ottawa on Thursday, June 12, 2025. THE CANADIAN PRESS/Sean Kilpatrick© The Canadian Press
Alberta Premier Danielle Smith says Imperial Oil's "very disappointing" plan to lay off roughly 20 per cent of its workforce by 2027 reinforces the need to build more pipelines.
Smith is blaming Ottawa for the layoffs at the Calgary-based company.
"The industry for the last 10 years has been hampered and hobbled by federal government decisions," she told an unrelated news conference in Calgary on Tuesday.
"This is what happens when you have uncertainty, and this is part of the reason why we have to work very quickly to get to a resolution with Ottawa so that we can start building again ... no one likes to see these kinds of consolidations.
"If we can realize the aspiration of building our pipelines north, south, east and west, doubling our production, then there's a lot of opportunity for people to get re-employed in this sector."
Imperial said Monday the cuts are part of a broader restructuring plan and would save the company about $150 million annually.
Company chairman John Whelan said in a statement the restructuring and layoffs will ensure Imperial continues to deliver returns and value for shareholders.
“We recognize the considerable impact this restructuring will have on our employees and their families," Whelan said.
"We are deeply committed to supporting our employees through this transition."
Related video: B.C. Premier tells Alberta not to 'mistake politeness for weakness' over pipeline plans (The Canadian Press)
The company also said part of the restructuring will see Imperial "further consolidate activities to its operating sites" in Alberta.
A spokesperson for the company, Lisa Schmidt, said in an email Tuesday that the company has reached a tentative agreement to sell its multi-building Calgary office complex and lease back the space it will still need.
"We plan to maintain a presence in Calgary," said Schmidt.
Data from LSEG Data and Analytics shows the layoffs would impact about 1,000 jobs, based on an employee count of 5,100 as of Dec. 31, 2024.
Federal Energy Minister Tim Hodgson also said Tuesday he's disappointed with the cuts.
He said he's working to understand what went into Imperial's decision and that the government will explore ways to support the workers losing their jobs.
"These are skilled, dedicated people who have greatly contributed to Alberta's energy sector and Canada's economy, and my thoughts are with them and their families as they receive this difficult news," Hodgson said on social media.
In August, Imperial reported $11.23 billion in total revenue and other income during the second quarter, down from $13.38 billion in the same quarter a year earlier.
Hodgson said it's his mission to make sure energy companies like Imperial stay prosperous as the government works to make Canada an "energy superpower."
"We are taking steps today to ensure the Canadian energy sector will continue to provide careers and prosperity for generations to come," he said.
Alberta Opposition NDP leader Naheed Nenshi said Monday the company's plan represents "a significant blow to Calgary and Alberta’s economy."
Nenshi called on Smith and her United Conservative Party government to develop a plan to keep good paying jobs in Alberta, especially with its unemployment rate being one of the highest in Canada.
This report by The Canadian Press was first published Sept. 30, 2025.
Jack Farrell and Fakiha Baig, The Canadian Press
Story by Jack Farrell and Fakiha Baig
• SEPTEMBER 3O, 2O25
Tim Hodgson, Minister of Energy and Natural Resources, provides an update on the forecast for the 2025 wildfires season at the National Press Theatre in Ottawa on Thursday, June 12, 2025. THE CANADIAN PRESS/Sean Kilpatrick© The Canadian Press
Alberta Premier Danielle Smith says Imperial Oil's "very disappointing" plan to lay off roughly 20 per cent of its workforce by 2027 reinforces the need to build more pipelines.
Smith is blaming Ottawa for the layoffs at the Calgary-based company.
"The industry for the last 10 years has been hampered and hobbled by federal government decisions," she told an unrelated news conference in Calgary on Tuesday.
"This is what happens when you have uncertainty, and this is part of the reason why we have to work very quickly to get to a resolution with Ottawa so that we can start building again ... no one likes to see these kinds of consolidations.
"If we can realize the aspiration of building our pipelines north, south, east and west, doubling our production, then there's a lot of opportunity for people to get re-employed in this sector."
Imperial said Monday the cuts are part of a broader restructuring plan and would save the company about $150 million annually.
Company chairman John Whelan said in a statement the restructuring and layoffs will ensure Imperial continues to deliver returns and value for shareholders.
“We recognize the considerable impact this restructuring will have on our employees and their families," Whelan said.
"We are deeply committed to supporting our employees through this transition."
Related video: B.C. Premier tells Alberta not to 'mistake politeness for weakness' over pipeline plans (The Canadian Press)
The company also said part of the restructuring will see Imperial "further consolidate activities to its operating sites" in Alberta.
A spokesperson for the company, Lisa Schmidt, said in an email Tuesday that the company has reached a tentative agreement to sell its multi-building Calgary office complex and lease back the space it will still need.
"We plan to maintain a presence in Calgary," said Schmidt.
Data from LSEG Data and Analytics shows the layoffs would impact about 1,000 jobs, based on an employee count of 5,100 as of Dec. 31, 2024.
Federal Energy Minister Tim Hodgson also said Tuesday he's disappointed with the cuts.
He said he's working to understand what went into Imperial's decision and that the government will explore ways to support the workers losing their jobs.
"These are skilled, dedicated people who have greatly contributed to Alberta's energy sector and Canada's economy, and my thoughts are with them and their families as they receive this difficult news," Hodgson said on social media.
In August, Imperial reported $11.23 billion in total revenue and other income during the second quarter, down from $13.38 billion in the same quarter a year earlier.
Hodgson said it's his mission to make sure energy companies like Imperial stay prosperous as the government works to make Canada an "energy superpower."
"We are taking steps today to ensure the Canadian energy sector will continue to provide careers and prosperity for generations to come," he said.
Alberta Opposition NDP leader Naheed Nenshi said Monday the company's plan represents "a significant blow to Calgary and Alberta’s economy."
Nenshi called on Smith and her United Conservative Party government to develop a plan to keep good paying jobs in Alberta, especially with its unemployment rate being one of the highest in Canada.
This report by The Canadian Press was first published Sept. 30, 2025.
Jack Farrell and Fakiha Baig, The Canadian Press
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