Repsol Cutting Canada Work Force as Oil Slump Reduces Activity

Repsol SA is reducing its work force in the heart of Canada’s oil patch by 10 to 15 percent...

Repsol SA is reducing its work force in the heart of Canada’s oil patch by 10 to 15 percent as it contends with a protracted slump in crude prices.

Spain’s largest oil producer, which acquired Canada’s Talisman Energy in May, is making the reductions to employees and contractors in Calgary, Brent Anderson, a spokesman, said Thursday in an e-mail. He declined to give a total figure for the positions eliminated.

“In light of ongoing low global energy prices, we’ve spent significant time considering what our organization needs to support our future activity levels,” Anderson said. “This is a very tough week for our company and all of the people who work here.”

The job reductions in Canada follow a plan by Repsol outlined to employees last year to cut about 1,500 positions as part of a program to boost cash and reduce costs after the $13 billion Talisman acquisition. Energy companies are eliminating jobs as they scale back on drilling and dividends to shareholders to cope with the worst oil slump in a generation. U.S. crude is still trading below $35 a barrel more than 20 months into the downturn.

Suggested articles

How Entrepreneurs Fail at Blockchain StartupsGo to article >>

To contact the reporter on this story: Rebecca Penty in Calgary at rpenty@bloomberg.net. To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Carlos Caminada, Susan Warren

By: Rebecca Penty

©2016 Bloomberg News

Got a news tip? Let Us Know