Energy
CVE

EXCLUSIVE-Cenovus to cut up to 25% of combined workforce with Husky Energy after deal -companies

Credit: REUTERS/TODD KOROL

Cenovus Energy plans to cut 20% to 25% of its workforce after it acquires Husky Energy, the companies told Reuters on Tuesday, as Cenovus begins to slash costs in the Canadian oil patch's biggest merger in four years.

By Jeff Lewis and Rod Nickel

TORONTO/WINNIPEG, Manitoba Oct 27 (Reuters) - Cenovus Energy CVE.TO plans to cut 20% to 25% of its workforce after it acquires Husky Energy HSE.TO, the companies told Reuters on Tuesday, as Cenovus begins to slash costs in the Canadian oil patch's biggest merger in four years.

The job losses could total about 2,150 positions, based on the size of their workforces, with the majority to take place in Calgary, Alberta, Husky said in a statement.

Cenovus and Husky confirmed the job cuts after two sources told Reuters of the magnitude of the reductions.

It was not clear when the cuts would take effect.

"As with any merger of this type, there will be overlap and there will be some difficult decisions as we work to create a combined organization best positioned for the future," Husky spokeswoman Kim Guttormson said.

She added that many details had yet to be determined as part of the integration planning process and the transaction has not yet closed.

The C$3.8 billion ($2.9 billion) combination announced Sunday, the largest Canadian oil and gas deal in nearly four years based on enterprise value, may pressure peers to get bigger or sell.

(Reporting by Jeff Lewis in Toronto and Rod Nickel in Winnipeg; Editing by David Gregorio)

((Jeff.lewis@tr.com; +1 647 200 7236; Rod.Nickel@tr.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CVE

Other Topics

US Markets

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More