It must be ‘Termination Tuesday’ as Husky confirms a second round of layoffs

Posted by: privatefinancetips in BLOG, Trend Mar 27, 2016

CALGARY C Husky Energy Inc. confirmed another wave of layoffs Tuesday, because the company shrinks its headcount in an attempt to survive sub-$30 oil prices.

Oilpatch employees in Calgary began calling the 2nd day of the job week “Termination Tuesday” during the period of 2015, as major oil and gas firms trimmed staff as oil prices fell.

Husky, one of the largest oil and gas producers headquartered in Calgary, confirmed Tuesday that it had laid off staff, but did not provide detail around the number of individuals impacted by the cuts.

“These take time and effort decisions and we’ll continue to go ahead and take steps necessary to ensure the company’s resilience through this cycle and beyond,” company spokesperson Mel Duvall said within an email, adding the layoffs were spread throughout Husky’s operations.

Last year, Husky cut 1,400 jobs from its operations, comprising about 22 per cent of their workforce.

While Husky would not confirm how many staff have been affected this week, social networking users claiming to be laid-off Husky employees and contractors said 500 people were cut.

The company has cut spending, attempted to grind down its costs and let go staff in an attempt to survive the prolonged oil price rout, that has now stretched out for 25 months.

In December, Husky president and CEO Asim Ghosh told the Financial Post that the company is in discussions to market its midstream assets in Western Canada as well as the non-core assets it said hello would sell last October.

He known as the current oil price environment, and also the decision by OPEC states to continue producing oil with no quota, “uncharted territory.”

The West Texas Intermediate benchmark oil price fell to US$27.94 per barrel Tuesday.

The confirmation of more layoffs at Husky be major oil and gas producers announce their fourth quarter results, which many analysts have said is going to be “ugly.”

Last week, Suncor Energy Inc. president and CEO Steve Williams said during an earnings call that his company had cut 1,700 people over the path of 2015. Suncor, the largest integrated energy company in Canada, posted a $2-billion net loss in your fourth quarter.

Husky is anticipated to report its fourth quarter results on Feb. 26.

gmorgan@nationalpost.com

Twitter.com/geoffreymorgan