CALGARY, Alberta, June 24 (UPI) -- Pipeline company TransCanada said it cut about 3 percent of its North American workforce in an effort to move forward with a $37 billion capital growth plan.
The company said 185 employees were told their positions were eliminated. The bulk of the positions cut were from the company's headquarters in Calgary, Alberta. TransCanada employs some 6,000 staff across North America.
Mark Cooper, a spokesman for the company, said the staff cuts were part of the restructuring of its Major Projects department and meant to move TransCanada along a capital growth trajectory.
"We need to provide the lowest cost services to our customers, many of whom have been deeply affected by the current environment, and we are taking a thoughtful and deliberate approach to determining how we can make our company even stronger and ensure we are positioned for success as we move forward," he said in an emailed statement.
A lower price for crude oil is leaving companies with less money to spend on exploration and production and forcing many to cut their staff numbers.
The Canadian Association of Oilwell Drilling Contractors said recently it revised downward its drilling forecast because of lower crude oil prices and changing market conditions in the resource-rich province of Alberta. That, in turn, suggests more jobs will be lost in the sector.
The Canadian Association of Petroleum Producers, meanwhile, said it expects industry spending to drop by more than $20 billion. So far, the group said more than 20,000 people have lost their jobs as a result of the slowdown.
Canada is the No. 1 oil exporter to the United States, where the shale boom is reducing the dependency on foreign oil. Canadian leaders and companies alike are trying to expand the reach of the nation's export potential with new pipelines, including the controversial Keystone XL through the United States.
Cooper stressed the staff cuts were not related to any particular project.
