Enbridge Offers Employees Early Retirement, Severance
According to Enbridge, about 800 employees have voluntarily left the company, which will help it to stave off layoffs as it works to trim costs in the current low oil price environment.
Last month the pipeline company shared its plan to defer $1 billion in 2020 capital spending and cut costs by $300 million. The plan included several steps, including salary reductions and voluntary staff departures. The latest headcount reduction is roughly 7% of the company’s workforce as of year-end 2019 figures, with the majority in Canada.
"Enbridge is a resilient company, but we are not immune to the unprecedented nature of the current crisis," said Jesse Semko, Sr. Advisor, Corp. Comms & Media Relations, in a statement emailed to Rigzone. "The dual challenge of COVID-19 and global oil price shock is impacting our company, particularly with decreased volumes in our liquids business. To meet this challenge we are reducing capital and operating costs across the business."
Semko confirmed the company's decision to reduce people-related costs through two steps:
- Offering employees across the business, including in Chatham, options to voluntarily select early retirement, severance, educational or personal leaves of absence or part-time work.
- Reducing base pay across its non-union workforce, starting from the top with the board of directors (15%), the CEO (15%) and EVPs (10%).
"As a result of these actions, we won’t need to pursue company-wide layoffs at this time. We will continue to be disciplined in our spending to ensure the continued strength of Enbridge over the long term."
Last month, the company reported a $1.43-billion 1Q loss that included a $1.74 billion impairment on its investment in DCP Midstream.
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