Enbridge Job Cuts
Published: November 17, 2015
Enbridge Job Cuts, Enbridge Inc. has cut 5 per cent of its work force – representing 500 full-time jobs and 100 unfilled positions – as the Calgary-based pipeline company copes with the severe downturn in the energy sector.
Its rival, TransCanada Corp., signalled that it, too, is getting set to announce more job cuts, adding to the gloom in the sector that has worsened as crude oil prices have been depressed for more than a year.
Enbridge, the largest transporter of Canadian crude oil to domestic and U.S. markets, said on Monday it made the job reductions in all its business units in Canada and the United States. Half the cuts are in Alberta.
“While Enbridge is more resilient to commodity price downturns than others, we’re not immune,” spokesman Graham White said in an e-mail.
The company is cutting costs to remain competitive and, despite the tough measures, it is on solid financial footing, Mr. White said.
The moves come amid questions over the fate of the company’s contentious Northern Gateway crude oil pipeline proposed to run through British Columbia to the Pacific Coast.
Prime Minister Justin Trudeau’s newly elected Liberal government has said it will proceed with a ban on crude oil tankers on British Columbia’s northern coast, which would essentially render such a pipeline useless. The company has said it is still working to satisfy more than 200 conditions attached to its regulatory approval.
Enbridge gave no indication that any of the job cuts are related to the situation, however.
“A key element of our success depends on our competitiveness and our ability to withstand difficult times like those our industry is experiencing today. Disciplined cost management has always been part of that and core to our business model,” Mr. White said.
Meanwhile, TransCanada said it is making changes to its corporate structure. It cut one-fifth of its senior executive ranks in September. A company spokesman said he could not give details of upcoming cuts.
“By the end of November, all managers, employees and contractors will be advised of changes to their role, if any, for them. Until all managers, employees and contractors are notified, we are unable to provide detail on employee or contractor reductions,” TransCanada’s Terry Cunha said.
Last week, U.S. President Barack Obama rejected the company’s Keystone XL oil pipeline proposal, following years of study.
Please feel free to send if you have any questions regarding this post , you can contact on