ConocoPhillips Canada says it plans to lay off 250 to 300 employees this week, with the majority of cuts coming from its Calgary head office.
Company spokesman Rob Evans said the cuts are part of a global staff realignment to match future activity levels, with Canada looking less attractive than some of its other operations.
“Low commodity prices, combined with our inability to get product to new markets, has resulted in lower prices in Canada relative to other parts of the world,” Evans said in an email.
“Coupled with increased local cost pressures such as corporate taxes, regulatory compliance costs and property taxes, staying competitive in a global portfolio is a challenge for some parts of our Canadian business.”
In February, ConocoPhillips cut its dividend and capital spending after reporting its biggest quarterly loss in almost a decade.
The company’s quarterly dividend was reduced to 25 cents a share from 74 cents previously. The company also lowered capital expenditures guidance to $6.4 billion from $7.7 billion and operating costs guidance to $7 billion from $7.7 billion.
With files from Canadian Press