A Husky gas station in Abbotsford, B.C. (Google Street View image)

Husky Energy confirms 370 job cuts as it trims spending by $500 million

Calgary-based company is cutting 2020-21 capital spending

About 370 jobs have been cut at Husky Energy Inc. this year with most of the reductions coming in a major round of layoffs in October, CEO Rob Peabody revealed on a conference call Monday to discuss guidance for 2020 and 2021.

The Calgary-based company had refused previously to say how many workers were affected by job cuts designed to better align its workforce with lower capital spending plans going forward.

“What we’re seeing is that (the reductions) will generate forward savings of about $70 million,” said Peabody, adding the company will take a charge against earnings of $70 million in the fourth quarter to account for the job cuts.

“We’re going to continue those efforts to capitalize on the fact we’ve created a more focused and a simpler company.”

In a regulatory filing earlier this year, Husky indicated it had 5,157 permanent employees at the end of 2018, little changed from the numbers at the end of 2016 and 2017.

Capital spending for 2020 and 2021 is being cut by $500 million compared with guidance released last spring due to what Husky called changing market conditions.

The budget for 2020 is to fall by about $100 million to between $3.2 billion and $3.4 billion while the following year it will drop by about $400 million.

Husky says average upstream production is expected to be in the range of 295,000 to 310,000 barrels of oil equivalent per day for 2020, up about four per cent, despite about 5,000 barrels of oil per day in the first half of the year expected to be interrupted by an oil curtailment program in Alberta and planned maintenance.

Production is expected to rise about about 10 per cent in 2021 as new projects come on stream.

The company says its capital spending for 2020 will focus on its Lloydminster, Sask., thermal project portfolio, its Liuhua 29-1 offshore natural gas project in China, and construction of the West White Rose Project in the Atlantic region.

The guidance does not include $450 million to $525 million related to the ongoing rebuild of the Superior Refinery, which is expected to be covered by insurance.

Husky based its plan on an oil price assumption of US$55 per barrel of West Texas Intermediate for 2020 and US$60 in 2021.

Dan Healing, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Salmon Arm pharmacies continue to experience flu vaccine shortage

One pharmacy has privately sourced vaccine in stock, available for purchase

Best in business: North-Okanagan Shuswap companies named top 10 semi-finalists

Small businesses from Salmon Arm, Vernon, Kelowna compete for top spot

White Lake firefighters go beyond call of duty with construction project

Storage shed built for sports equipment in South Shuswap park

Opening date for popular North Shuswap outdoor ice rink delayed

Warmer temperatures have pushed back the openings of several rinks in the region

New safety measures in place as snowmobile season gets underway in Sicamous

VHF radio channel posted at trailheads, assisted in rescue of stranded sledders

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

Column: Kid’s growing up fast on Old Town Road

In Plain View by Lachlan Labere

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

Frosty will have to pay rent to stay on Okanagan sidewalk next Christmas

Vernon Teach and Learn allowed to keep Frosty up, but will need a permit come January 1

Prince George RCMP use bait packages to catch porch pirates over the holidays

First-in-Canada program with Amazon looks to combat parcel theft

WATCH: Fire destroys Big White Ski Resort chalet

Social media eulogies peg the property, nicknamed “The Pharamacy,” as both loved and hated

Conservation officers on the hunt for North Okanagan moose poachers

Officers execute search warrant Friday morning, investigation continues

UPDATE: Highway 1 reopens after vehicle incident near Boston Bar

Initial reports of a jack-knifed semi truck had closed both directions of the highway

Nanaimo mechanical engineer creates thief tracking program

Nanaimo Thief Tracking lets users plot and share information about thefts online

Most Read