Cenovus now expects to cut nearly a quarter of its employees and contractors by the end of this year. The energy company was looking at getting rid of 300 to 400 people earlier this year, but it now looks like it will be 700. That will lead to roughly $400 million in cost savings, but Cenovus will likely pay $32 million in severance in its fourth quarter.
The news follows Devon Energy’s announcement that it has cut 15 per cent of it Canadian workforce. That works out to about 200 employees, including from its field operations in northern Alberta.
The Canadian Association of Petroleum Producers estimates that around 36,000 jobs have been lost in the oil and gas sector in 2015 – mostly in this province.