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

FILE - Nathan Cullen speaks to media in Smithers, B.C., Friday, February 28, 2020. THE CANADIAN PRESS/Jonathan Hayward
More calls come in for Cullen’s removal as NDP candidate

Gitxsan Hereditary Chiefs demand Cullen’s removal. Ellis says, There’s no place in B.C. for racism

BC Liberal Party candidate for the North Coast Roy Jones Jr. will hold virtual face-to-face meetings for North Coast communities on Oct. 18. (Photo: K-J Millar/The Northern View)
BC Liberal Candidate Roy Jones Jr, will meet constituents virtually

Face to face conversations will be held on Oct. 18 for North Coast communities

Kelly Lynn Whitney has been acclaimed as the successful candidate on Oct. 16, in the Village of Port Clements by Election. Seen in photos Kelly Whitney-Gould is pictured putting finishing touches on “Ms. Gnomer’s Home 4 Wayward Folk.” (Kelly Whitney-Gould/Submitted photo)
Kelly Lynn Whitney acclaimed in By Election

Village of Port Clements By Election success

Stikine provincial election candidates (clockwise from top left): Nathan Cullen, NDP; Darcy Repen, Rural BC Party; Rod Taylor, Christian Heritage; and Gordon Sebastian, BC Liberals.
‘Where is Annita McPhee?’: Cullen under fire from opening salvo of all-candidates forum

Four Stikine candidates spar during online debate from Prestige Hudson Bay Lodge in Smithers

Working smoothly together on May 11, 2020, health minister Adrian Dix, B.C. Liberal health critic Norm Letnick, provincial health officer Dr. Bonnie Henry and sign language interpreter Nigel Howard. (B.C. government video)
COVID-19 co-operation a casualty of B.C.’s pandemic election

NDP’s Horgan weaponizes senior care, B.C. Liberal Wilkinson calls for ‘wartime economy’

The official search to locate Jordan Naterer was suspended Saturday Oct. 17. Photo courtesy of VPD.
‘I am not leaving without my son,’ says mother of missing Manning Park hiker

Family and friends continue to search for Jordan Naterer, after official efforts suspended

A bear similar to this black bear is believed responsible for killing a llama in Saanich on Oct. 19. (Black Press Media file photo)
Vancouver Island residents warned to watch livestock, pets after bear kills llama

Officers could not track the bear they feel may not fear humans

Bernard Trest and his son Max, 10, are concerned about B.C.’s plan for students in the classroom. He was one of two fathers who filed a court application in August to prevent schools from reopening if stricter COVID-19 protections weren’t in place. That application was dismissed last week. (Contributed photo)
B.C. dad pledges to appeal quashed call for mandatory masks, distancing in schools

Bernard Trest and Gary Shuster challenged health, education ministries’ return-to-school plan

RCMP crest. (Black Press Media files)
RCMP cleared in fatal shooting of armed Lytton man in distress, police watchdog finds

IIO spoke to seven civillian witnesses and 11 police officers in coming to its decision

A 34-year-old man was treated for a gunshot wound in Williams Lake Monday, Oct 19, 2020. (Angie Mindus photo - Williams Lake Tribune)
Williams Lake man treated for gunshot wound after accidental shooting: RCMP

Police are reminding residents to ensure firearms are not loaded when handling them

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

A injection kit is seen inside the newly opened Fraser Health supervised consumption site is pictured in Surrey, B.C., Tuesday, June 6, 2017. THE CANADIAN PRESS/Jonathan Hayward
B.C. records 127 fatal overdoses in September, roughly 4 each day

Vancouver, Surrey and Victoria continued to see the highest numbers of overdoses

Investigators work at the Sagmoen farm in Silver Creek. - Image credit: Observer file photo.
Sex workers allegedly called to farm of Okanagan man convicted of assault, RCMP investigating

Curtis Sagmoen, convicted in relation to assault of sex trade workers, is prohibited from soliciting escorts

Most Read