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

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

From right: Brad Cameron, BCEHS superintendent of patient care delivery for Greater Victoria, with primary care paramedics Em Funk, Tyrone Trotter, Fiona Galvin and Peter Hill at the Leigh Road station. (Black Press Media file photo)
West Shore paramedics didn’t waver when faced with COVID-19 pandemic

B.C. Emergency Health Services personnel are this year’s Courage and Bravery Award recipients

February is Black History Month. (Photo: Government of Canada)
Camosun College highlighting Black content with research guide during Black History Month

The collection includes a range of works by Black authors and creators

Amy Morrison was surprised to find a note on her windshield for parking on a public street with no restrictions in south Oak Bay where she works. (Amy Morrison Photo)
Oak Bay resident uses notes to claim street parking

‘You must have noticed, we park in front of OUR HOUSE,’ note writer says

Debra Sheets, a University of Victoria nursing professor, is starting Victoria’s first Memory Cafe program for adults with dementia and their caregivers. (Photo: Debra Sheets)
Memory Cafe Victoria hopes to connect local dementia community

Adults with dementia and their caregivers will participate in weekly Zoom socializing and activities

Dr. Bonnie Henry leaves the podium after talking about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
COVID: 589 new cases in B.C., and 7 new deaths

No new outbreaks being reported Feb. 26

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

The first of 11 Dash 8 Q400 aircraft's have arrived in Abbotsford. Conair Group Inc. will soon transform them into firefighting airtankers. (Submitted)
Abbotsford’s Conair begins airtanker transformation

Aerial firefighting company creating Q400AT airtanker in advance of local forest fire season

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Then-Liberal leader Andrew Wilkinson looks on as MLA Shirley Bond answers questions during a press conference at Legislature in Victoria. (Chad Hipolito / THE CANADIAN PRESS)
B.C. Liberal party to choose next leader in February 2022

Candidates have until Nov. 30 to declare whether they are running

After nearly 10 months of investigations, Mounties have made an arrest in the tripping of an elderly woman in Burnaby this past April. (RCMP handout)
VIDEO: Mounties charge suspect for tripping elderly woman near Metrotown in April

32-year-old Hayun Song is accused of causing bodily harm to an 84-year-old using her walker

British Columbia provincial health officer Dr. Bonnie Henry arrives to view the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
Death threats mount against Dr. Bonnie Henry, sparking condemnation from Horgan, Dix

Henry has become a staple on televisions in homes across British Columbia since January 2020

Shoppers will be able to get their hands on signed bottles of Ryan Reynolds’ new gin at B.C. liquor stores this summer. (Twitter/Ryan Reynolds)
Ryan Reynold’s Aviation Gin autographed and coming to B.C. stores

This summer 100 bottles will be available to the public for purchase across five B.C. liquor stores

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
‘Stay local’: Dr. Henry shoots down spring break travel for British Columbians

B.C. is reportedly working with other provincial governments to determine March break policies

Most Read