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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Investigators still hoping to solve 2015 Brown homicide case

Tips being sought into Penelakut Island woman’s death five years ago

‘He has a home’, the tale of Ladysmith’s Turf Kitty

Chewy, also known as ‘Turf Kitty’, is a popular presence at Forrest Field

Downtown Ladysmith vehicle fire quickly extinguished

LFR Lieutenant Matt Rickett said that everyone involved responded exactly how they were supposed to

QUIZ: How much do you know about British Columbia?

On this B.C. Day long weekend, put your knowledge of our province to the test

B.C. would not send students back to school if there was ‘overwhelming risk’: Horgan

Plan has left many parents across the province worried about their children’s safety

Face masks will be mandatory for customers at all Walmart locations

Requirement goes into effect on Wednesday, Aug. 12 across Canada

Masks to be mandatory on BC Transit, TransLink starting Aug. 24

Both BC Transit and TransLink made the announcement in separate press releases on Thursday

Penticton homes evacuated due to wildfire northwest of city

Emergency vehicles are at the scene near Sage Mesa, evacuation centre set up in Penticton

British Columbians worried as end of COVID-19 rental supplement looms

Single mom struggles as supplement was her saving grace

B.C. fish harvesters receive long-awaited details on pandemic benefits

Applications to the $470-million federal assistance programs will open Aug. 24

Arson suspected in several wildfires lit near Kootenay town

RCMP making progress in arson investigation of Marsh Creek fires

Three screening officers at Vancouver airport test positive for COVID-19

The public is not believed to be at risk of exposure

VIDEO: B.C. conservation officers free not-so-wily coyote with head stuck in jar

Poor pup was found with a glass jar stuck on its head in Maple Ridge

Most Read