ExxonMobil’s plan to eliminate up to 300 positions in Canada by the end of next year will affect operations in Newfoundland and Labrador.
Margot Bruce-O’Connell, spokeswoman for ExxonMobil Canada, confirmed to The Telegram that 30 jobs will be affected, with most of those positions based in St. John’s.
“The workforce reductions are the result of ongoing reorganizations and work-process changes to improve efficiency and reduce costs,” Bruce-O’Connell said in an emailed response. “These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions. The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work.
“We recognize any job losses are difficult for individuals and their families who may be affected. Impacted employees will be provided with company support, including outplacement services.”
According to Bruce-O’Connell, the cuts involve fewer than 10 per cent of all staff based in St. John’s. Recently, the company relocated its St. John’s office to a newly built property on Hebron Way.
Affiliates impacted
According to the parent company’s announcement Wednesday, ExxonMobil is spreading the cuts amongst three affiliate companies with operations in Canada — petroleum refiner Imperial Oil Limited, ExxonMobil Canada Ltd. and ExxonMobil Business Centre Canada ULC.
ExxonMobil Canada operates the Hebron oil field and is among a consortium of operators handling the Hibernia oil project. The company also has an office in Halifax.
Imperial Oil has business interests in New Brunswick, Nova Scotia and Newfoundland and Labrador, including the Imperial Oil Dartmouth Terminal. Asked about job implications for the region, an Imperial Oil spokeswoman told The Telegram the company did not have any additional details to share beyond what ExxonMobil already announced.
Dwindling demand for petroleum products during the COVID-19 pandemic has forced a lot of companies with business in Newfoundland and Labrador to scale back operations. Husky Energy, soon to become a part of Cenovus Energy through a deal due to close early next year, announced layoffs in St. John’s last month, and the company has idled its West White Rose project. Suncor Energy, operator of the Terra Nova oil field, also recently announced it will reduce its staff by up to 15 per cent over the next year and a half. And the future of the Come By Chance oil refinery still seemingly hinges on its owner, Silverpeak, finding a buyer for North Atlantic Refining Ltd.
Andrew Robinson is a business reporter in St. John's.
