Enbridge Inc. plans to chop its workforce by about 6 p.c as one of many world’s largest oil pipeline operators faces steep financial headwinds.
The corporate will scale back 650 out of about 11,300 workers resulting from greater rates of interest, financial uncertainty and unspecified geopolitical developments, all of which “contribute to more and more difficult enterprise situations throughout many industries,” the Calgary-based firm stated in an electronic mail.
“Decreasing our working prices and strengthening our competitiveness will allow us to climate near-term challenges and stay the first-choice vitality supply firm in North America and past,” a spokesperson for the corporate stated.
Enbridge operates a collection of oil and fuel pipelines throughout the US and Canada in addition to vitality terminals on the US Gulf Coast and offshore windmills in Europe. The job cuts occur as firms together with Alphabet, Amazon, Citigroup, Ebay, Macy’s, Microsoft, Shell, Sports activities Illustrated, and Wayfair have all introduced job cuts to this point in 2024 in a damaging sign for financial development going ahead.
Enbridge is going through new competitors from the soon-to-start Trans Mountain oil pipeline, which can draw some oil shippers away from the corporate’s Mainline export pipeline system. The cuts, first reported by the Calgary Herald, will occur in February, the newspaper reported.
The corporate is anticipated to report fourth-quarter monetary outcomes on Feb. 9.