CALGARY – Cenouvs Energy is slashing 440 jobs as part of its previously announced cost-cutting plans due to low oil prices.
Spokesman Brett Harris says Cenovus has already cut 190 mostly contractor positions, while an additional 250 people from its Calgary head office and field operations will go in the coming weeks.
The oil and gas producer said in February that it was aiming to cut operating and administrative costs by $200 million this year, in part through workforce reductions as well as lower cash compensation for its five highest-paid executives.
At the time, Cenovus cut a further $200 million to $300 million from its capital spending plans and slashed its dividend by 69 per cent as it announced a $641 million net loss for the fourth quarter.
The latest workforce cuts bring total staff cuts to about 1,600 since the end of 2014, leaving total staff numbers down 31 per cent at 3,600 employees.
On Friday, Arkansas-based Murphy Oil also confirmed it has cut staff across its global operations, including Calgary, in response to low commodity prices.
Company spokeswoman Kelly Whitley said the majority of the cuts had already happened, but declined to provide any details on the number of layoffs.
The company holds a five per cent stake in the Syncrude Canada oilsands operation, as well as heavy oil assets in Alberta, shale gas operations in British Columbia, and non-operating assets in Newfoundland.
The Canadian Association of Petroleum Producers estimates more than 41,000 direct jobs have been cut in the energy sector, along with many more indirect jobs.