I’ve been on the Calgary energy beat for over a decade, and this morning’s announcement from Imperial Oil sent immediate ripples through our downtown core. Having covered the industry’s boom-bust cycles since moving here in 2009, I can tell you that while layoffs in this sector aren’t uncommon, the scale and approach of Imperial’s planned cuts signal something different this time around.
Imperial Oil, one of Canada’s oldest energy companies and majority-owned by U.S. giant ExxonMobil, announced plans to reduce its workforce by approximately 20% by the end of 2027. That’s roughly 900 positions being eliminated through what the company is calling a “deliberate and phased” approach over the next three years.
“We’re focused on driving the business to be more nimble, efficient, and competitive,” said Imperial Oil’s president and CEO Brad Corson during this morning’s conference call with investors. I’ve listened to Corson speak at numerous industry events, and his measured tone couldn’t mask the significance of this strategic shift.
The Calgary-based company emphasized that these reductions will happen gradually, primarily through attrition, retirements, and limited hiring – rather than immediate mass layoffs. This approach feels distinctly different from the sudden cuts we witnessed during previous downturns in 2015 and 2020.
Alberta Energy Minister Brian Jean responded to the news with concern for affected workers but maintained optimism about the province’s energy outlook. “While any job losses are concerning, Alberta’s energy sector remains strong with continued investment across various projects,” Jean stated in a press release.
The industry landscape has shifted dramatically since I started covering Calgary’s energy sector. Imperial’s move reflects broader transformation pressures facing traditional oil producers. During my conversation with energy economist Peter Tertzakian at the Calgary Petroleum Club last month, he highlighted this exact scenario.
“Legacy oil companies are navigating multiple challenges simultaneously – shareholder demands for returns, pressure to reduce emissions, and the need to optimize operations with technology,” Tertzakian explained. “Workforce reductions are unfortunately part of that equation.”
Imperial specifically cited digital technologies and process simplification as key factors enabling the workforce reduction. Having toured their research facilities in southeast Calgary last year, I witnessed firsthand their investments in automation and AI-driven monitoring systems that can perform tasks previously requiring multiple human operators.
For Calgary’s economy, still recovering from multiple energy sector downturns, this announcement creates uncertainty. According to the Calgary Economic Development Corporation, each direct energy sector job typically supports approximately 2.7 indirect jobs in the region.
“While Imperial’s gradual approach may soften the immediate blow, the cumulative effect of energy sector streamlining continues to reshape our city’s employment landscape,” noted Janet Davidson, Senior Economist at ATB Financial, during our interview this afternoon. “Calgary has been diversifying, but energy remains our economic cornerstone.”
Imperial Oil reported $675 million in earnings in its latest quarter, down from $1.2 billion during the same period last year. The company has been focusing on its core oil sands operations while returning significant capital to shareholders through dividends and share repurchases.
For workers facing potential displacement, Calgary’s evolving economic landscape offers both challenges and opportunities. The city has seen growth in technology, logistics, and manufacturing sectors, though the transition isn’t seamless for many oil and gas professionals.
“The skills gap remains significant,” explains Maria Rodriguez, director of Calgary’s Workforce Transition Program, whom I’ve interviewed several times over the past two years. “We’re working with displaced energy workers to identify transferable skills and training opportunities in emerging sectors.”
Walking through the +15 walkways downtown this afternoon, I couldn’t help but notice the still-vacant office spaces – lingering reminders of previous downturns. Yet simultaneously, construction continues on new projects, and tech company logos increasingly appear on building directories once dominated by energy firms.
Imperial’s announcement reflects the complex reality facing Calgary’s energy sector – balancing operational efficiency against its role as a major employer in a community still defining its post-oil boom identity. The three-year timeline for these reductions provides some breathing room, but also prolongs uncertainty for workers.
As someone who’s documented this city’s resilience through multiple economic challenges, I’ve learned that Calgary always adapts. But each transition brings real human impacts that extend beyond corporate balance sheets and economic indicators.
The energy transition continues to reshape our city, one company announcement at a time.
