Imperial Oil (TSX: IMO) announced Monday it will eliminate 20% of its workforce by the end of 2027, cutting approximately 900 positions as the company restructures to reduce costs and adopt new technology.
The energy producer, majority-owned by Exxon Mobil, expects the restructuring to generate $150 million in annual savings by 2028. Calgary will bear the brunt of the cuts, with Imperial having operated its headquarters in the city since 2004.
The company will take a one-time restructuring charge of roughly $330 million in the third quarter. Imperial employed 5,100 people at the end of 2024.
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The company will transition most surviving Calgary jobs to its Strathcona refinery site near Edmonton starting in late 2028, leaving behind only a skeleton staff in the city.
“We recognize the considerable impact this restructuring will have on our employees and their families,” Chairman and CEO John Whelan said in a statement. “We are deeply committed to supporting our employees through this transition.”
Imperial plans to centralize operations by establishing what it calls “global business and technology centres,” drawing on its parent company’s resources and expertise.
Imperial runs major oilsands operations in northern Alberta at Kearl and Cold Lake and ranks as Canada’s largest petroleum refiner. Production targets for 2025 remain on track, the company said.
Canada’s Natural Resources Minister Tim Hodgson called the news “deeply disappointing” and said officials are working to understand the decision and support affected workers.
The cuts reflect a broader trend across Canadian corporations. Other energy firms, including ConocoPhillips and Cenovus, have announced similar reductions in recent months.
TD Bank, Canada’s second-largest bank, announced a major restructuring in May that will eliminate approximately 2,000 positions. At an investor day on Monday, the bank expanded its cost-cutting targets to $2 billion to $2.5 billion in annual savings through workforce reductions, automation, AI adoption, and operational streamlining.
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