Calgary’s Enbridge, a major pipeline company, plans to eliminate around 650 jobs due to economic challenges and regulatory hurdles.
Despite a strong financial performance in 2023, the company aims to reduce costs to remain competitive.
The layoffs, starting in February and concluding by March 1, follow a year of fluctuations in the energy sector.
Enbridge attributes the downsizing to economic instability, tough regulations, high interest rates, intense competition, and global geopolitical impacts.
The company intends to mitigate the impact on employees by focusing on vacant and contractual positions, and by reassigning staff where possible.
With over 12,000 employees primarily in Canada and the U.S., Enbridge will announce its fourth-quarter financial results on February 9.
In the third quarter, it reported adjusted earnings of $1.27 billion, a slight decrease from the previous year.
Recently, Enbridge has made significant moves, including the $19 billion acquisition of three U.S. natural gas utilities from Dominion Energy and the sale of its interest in the Alliance natural gas pipeline for $3.1 billion.
In 2020, about 800 employees took voluntary retirement or leave due to the pandemic.
This downsizing mirrors broader trends in the Canadian oil industry, as companies like Suncor Energy also announced significant job cuts last year.