Canada’s energy minister and Alberta’s premier voiced rare harmony on Tuesday: both are unhappy with Imperial Oil’s decision to trim about 20% of its workforce by the end of 2027 and pull back from Calgary.
The company, majority owned by Exxon Mobil, framed the cuts as part of a broader restructuring to centralize work, lean on technology, and lower costs as crude prices sag.
Tim Hodgson, Canada’s minister of energy and natural resources, said he is “deeply disappointed” and that Ottawa will work to understand the decision and “explore ways to support affected employees.”
He added that keeping Canada’s energy firms prosperous remains a priority. Hodgson’s remarks were published on social media and echoed in media briefings Tuesday.
In Calgary, Alberta Premier Danielle Smith called the plan “very disappointing,” criticized federal policies for sowing uncertainty, and argued the episode underscores the need for new pipelines.
“This is what happens when you have uncertainty,” Smith told reporters, while urging faster progress on major projects.
What Imperial plans
Imperial Oil (TSX: IMO, NYSE American: IMO) said the restructuring will reduce annual expenses by about C$150 million once fully implemented by 2028.
The company expects a one-time, before-tax restructuring charge of roughly C$330 million in the third quarter of 2025.
Management said guidance for 2025 remains unchanged, citing confidence in meeting or beating medium-term targets at the Kearl and Cold Lake oil sands operations.
The headcount reduction equates to roughly one in five roles based on Imperial’s year-end 2024 workforce of about 5,100. Many of the corporate positions affected are in Calgary, where the company said about 900 office jobs will be eliminated.
As part of the overhaul, Imperial plans to consolidate more work at operating sites and global business and technology centers tied to its majority owner.
Imperial also intends to keep only a small presence in Calgary and shift most remaining head-office roles to its Strathcona refinery near Edmonton in the second half of 2028, according to a company spokesperson.
The company has reached a tentative agreement to sell its multi-building Calgary office complex and lease back the space it still needs, while emphasizing it will maintain a presence in the city.
John Whelan, Imperial’s chairman, president and CEO, acknowledged the human toll.
In a press release, Whelan said the restructuring aims to “deliver returns and value for shareholders,” while adding: “We recognize the considerable impact this restructuring will have on our employees and their families.”
The timing underscores how quickly the sector is retrenching as prices soften and producers chase efficiency.
A day after Imperial’s announcement, Exxon Mobil said it would eliminate about 2,000 roles globally, largely in Europe and Canada, as part of its own reorganization, while noting no U.S. job cuts are planned.
Oil and gas companies across North America have announced thousands of layoffs this year as they consolidate office footprints and co-locate teams.
For Calgary, the immediate hit lands on corporate employment and the downtown ecosystem that services it. Imperial says the plan will streamline decision-making, harness shared technology and support, and concentrate staff closer to assets.
The company also reiterated confidence in production and cost targets at Kearl and Cold Lake, and signaled no change to full-year guidance even as it books the one-time charge.
