Enbridge Cuts 5% of Workforce to Cope With Oil Downturnby
Enbridge Inc., Canada’s largest pipeline operator, said it’s reducing its workforce by 5 percent to cope with the downturn in the oil industry.
The cuts represent about 500 full-time jobs and 100 unfilled positions, the company said in an e-mail on Monday. The cuts were made in both the U.S. and Canada, Enbridge said.
Enbridge reported a third-quarter loss this month as one-time charges and a delay in the startup of a pipeline to Eastern Canada dragged down earnings. The company still plans to spend C$38 billion ($28.5 billion) through 2019 on new projects , including liquids and natural gas lines, as well as power generation and gas processing.
“While Enbridge is more resilient to commodity price downturns than others, we’re not immune,” the company said. “Although these actions are necessary to maintain our competitiveness, our company is on very strong financial and strategic footing and we will continue to grow.”
The Canadian oil and gas industry has shed more than 36,000 since the price of oil began to slide last year, according to the Canadian Association of Petroleum Producers.
Rival TransCanada Corp. has also announced workforce reductions. TransCanada has struggled to win approval for projects such as the Keystone XL pipeline or get final decision for natural gas pipelines to the west coast of Canada.