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

This Dec. 2, 2020, file photo provided by Johnson & Johnson shows vials of the COVID-19 vaccine in the United States. (Johnson & Johnson via AP)
Interior Health notes 80 new COVID-19 cases over the weekend

108 people in the region have died from the virus

Last week warming temperatures were a concern for Avalanche Canada forecasters, and those trends likely contributed to an avalanche that killed a West Kootenay snowmobiler on Thursday, March 4. Jen Coulter file photo.
Warming trend contributed to Kaslo fatality: Avalanche Canada

Concern for persistent layers has reduced since then

Phase four of the Kicking Horse Canyon project would twin the winding stretch of the Trans-Canada Highway just east of Golden. ~ Photo by B.C. Ministry of Transportation
Additional closures announced to Trans-Canada east of Golden

Additional closures will be needed in May as a part of Phase 4 of the Kicking Horse Canyon Project

BC CDC monthly data showing geographic distribution of COVID-19 cases over the last 13 months. (BC CDC photo)
Monthly data for COVID-19 updated

The map shows the total case count through the last 13 months

Seniors in the Interior Health region can book their COVID-19 vaccinations starting Monday, March 8, 2021 at 7 a.m. (File photo)
Seniors in Interior Heath region can book COVID-19 shots starting Monday

Starting March 8 the vaccination call centre will be open 7 a.m. to 7 p.m. daily

Five Kelowna writers are featured in an anthology that launched in time for International Women's Day. (Twila Amato - Black Press Media)
International Women’s Day: Book exploring fears features Kelowna writers

The book has launched in time for International Women’s Day

Montreal Canadiens right wing Paul Byron (41) fights for control of the puck with Vancouver Canucks defenceman Quinn Hughes (43) during first period NHL action in Vancouver, Monday, March 8, 2021. THE CANADIAN PRESS/Jonathan Hayward
Captain Clutch: Horvat nets shootout winner as Canucks edge Habs 2-1

Vancouver, Montreal tangle again on Wednesday

A special committee has been appointed to look at reforming B.C.’s police act and is inviting the public to make submissions until April 30, 2021. (Black Press media file)
Have thoughts on B.C.’s review of the provincial Police Act?

Submissions will be accepted until April 30

Susan Kootnekoff is the founder of Inspire Law, an Okanagan based-law practice, and provides Kelowna Capital News with weekly stories from the world of local, national and international law. (Contributed)
Kootnekoff: Royal Dismissal

Susan Kootnekoff is the founder of Inspire Law, her diverse legal career spans over 20 years

Cottonwoods Care Home in Kelowna. (Google Maps)
New COVID-19 outbreak at Kelowna care home includes fully vaccinated seniors: Henry

Two staff and 10 residents tested positive at Cottonwoods Care Centre

Excerpts from a conversation between Bria Fisher and the fake truLOCAL job. Fisher had signed a job agreement and was prepared to start work for what she thought was truLOCAL before she learned it was a scam. (Contributed)
B.C. woman warning others after losing $3,000 in job scam

Bria Fisher was hired by what she thought was a Canadian company, only to be out thousands

Provincial health officer Dr. Bonnie Henry and Health Minister Adrian Dix provide a regular update on the COVID-19 situation, B.C. legislature, March 2, 2020. (B.C. government)
B.C.’s COVID-19 cases: 545 Saturday, 532 Sunday, 385 Monday

Focus on Prince Rupert, Lower Mainland large workplaces

(File photo)
RCMP seek witnesses after 2 different reports of man chasing children in Kelowna

Both incidents occured around Dougall Road in Rutland

Most Read