Imperial Oil Announces Major Job Cuts as Industry Turns to Automation
Imperial Oil has announced significant job cuts, following similar moves by other major energy companies. The oilsands industry is increasingly turning to automation and technology, leading to a predicted drop in employment by 2040.
Imperial Oil plans to reduce its workforce by 20% by the end of 2027. This move comes after layoffs by Cenovus Energy Inc. and Suncor Energy Inc., with Imperial set to lose around 900 corporate positions, mainly in Calgary. The company aims to centralize corporate and technical activities in global business and technology centers.
Employment in the oil and gas industry has been declining. Since 2014, there are 43% fewer direct jobs per thousand barrels produced. Automation and technological advances are putting downward pressure on jobs in the industry, with AI predicted to cause a significant drop in employment by 2040. However, Careers in Energy forecasts the energy industry to add between 41,600 and 46,500 direct jobs between 2022 and 2035, including emissions reduction areas.
Imperial Oil's job cuts reflect the industry's shift towards automation and technology. Despite the predicted job losses, there are still opportunities expected in the energy sector, particularly in emissions reduction areas. The industry continues to evolve, seeking efficiencies amid low oil prices and new technology.
