Cenovus Energy (TSX: CVE) has confirmed job reductions this week as it faces mounting pressure to improve performance ahead of its Q1 2025 earnings release tomorrow.

The company cited structural reviews and project completions as the impetus for the layoffs, which affected both employees and contractors.

“We have reviewed some team structures, which has led to some employees and contractors leaving the company,” Cenovus stated, emphasizing the cuts were part of a broader push to become “more competitive across all areas of our business.”

While the company did not disclose the total number of affected workers, the Alberta government acknowledged the layoffs, noting it was notified—suggesting that at least 50 employees were impacted at a single location, the threshold for mandated government reporting.

The province also confirmed that Cenovus is offering severance, extended benefits, and career counseling to qualifying employees.

This workforce reduction follows a difficult year for Cenovus. In 2024, net earnings fell to $3.1 billion from $4.1 billion in 2023, despite a modest increase in revenue to $54.3 billion. The company notably struggled with profitability in its US refinery division, contributing to a string of earnings misses over the past 12 months.

In October 2024, the firm also shocked the industry when it reportedly distributed $1.1 billion to shareholders in the previous quarter.

Cenovus last traded at $16.21 on the TSX.

Information for this briefing was found via BOE Report, CTV News, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.