TORONTO/WINNIPEG, Manitoba: Cenovus Energy plans to cut 20% to 25% of its workforce after it acquires Husky Energy, the companies told Reuters on Tuesday, as Cenovus begins to slash costs in the Canadian oil patch’s biggest merger in four years.
The job losses could total about 2,150 positions, based on the size of their workforces, with the majority to take place in Calgary, Alberta, Husky said in a statement.
Cenovus and Husky confirmed the job cuts after two sources told Reuters of the magnitude of the reductions.
It was not clear when the cuts would take effect.
“As with any merger of this type, there will be overlap and there will be some difficult decisions as we work to create a combined organization best positioned for the future,” Husky spokeswoman Kim Guttormson said.
She added that many details had yet to be determined as part of the integration planning process and the transaction has not yet closed.
The C$3.8 billion ($2.9 billion) combination announced Sunday, the largest Canadian oil and gas deal in nearly four years based on enterprise value, may pressure peers to get bigger or sell.
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