Oil and fuel producer Ovintiv — previously often called Encana — says it has slashed its workforce by 25 per cent because it prepares for extra modest development within the power sector.
The corporate stated its workforce will now whole 2,100, together with 1,900 workers and 200 contractors. The choice impacts roughly 650 jobs.
Particulars about the place the reductions have been made weren’t instantly accessible. The corporate stated it’s not offering regional breakdowns of any layoffs.
However a spokesperson stated Wednesday the workforce reductions have been close to equal percentages throughout the corporate’s three company workplaces, which embody Calgary, Denver, Colo., and Woodlands, Texas.
It is the second main workforce discount by the corporate in somewhat over a yr.
In February, 2019, Encana introduced it had reduce its whole workforce by 15 per cent and diminished its ranks of executives by 35 per cent. It was estimated on the time that the transfer affected roughly 470 jobs.
Thursday’s information comes amid stories of layoffs throughout the oil and fuel sector.
The North American business has been hammered by the financial affect of the COVID-19 pandemic, with demand for gasoline plunging as a world value battle flooded the market with low cost crude.
The state of affairs spurred oil and fuel firms to slash each manufacturing and capital spending. It additionally led to job losses throughout North America, with Rystad Energy pegging the U.S. tally at over 100,000.
Earlier this spring, Ovintiv introduced it might reduce second-quarter spending by $300 million and stated it was ready to additional cut back capital investments all year long.
The corporate has reduce the variety of rigs it operates in Canada and the U.S. — to seven from 23 — in a transfer it stated mirrored its expectation of future exercise ranges.
Ovintiv introduced final fall that it was transferring its company headquarters from Calgary to america. It had been beforehand known as Encana, one in all Canada’s oldest and largest power firms.
Ovintiv inventory was up greater than eight per cent on the Toronto Inventory Change on Thursday, climbing to $15.56 a share.