CNRL cuts 400 jobs while avoiding layoffs

Canadian Natural Resources Ltd. says it shed nearly 400 jobs — roughly five per cent of its workforce — in the past two years, but not by issuing layoffs.

The country’s biggest heavy oil producer, which claims it hasn’t laid anyone off due to the economic downturn, says it scaled back its workforce through attrition.

The company was not alone, with a human resources group noting scores of oilpatch jobs left vacant by retirements have not been filled “to reduce costs and create a leaner workforce.”

“Unlike previous years where those retirements would be automatically replaced, that’s not necessarily the case going forward,” said Carol Howes, a vice-president at Enform.

As oil prices started crashing in 2014, Canadian Natural Resources (CNRL) imposed a hiring freeze for non-essential personnel. It meant hundreds of positions were left vacant as employees retired or moved on for other jobs.

The company shed 540 positions in its North American exploration and production division in 2015 and 2016, its year-end filings show. But the losses were slightly offset by a gain of 180 workers at its oilsands operations as it expanded its massive Horizon project.

The result is a net decline of nearly 400 positions at CNRL.

“Through this disciplined process, we have effectively managed our staffing levels and have kept our team together by not laying off staff due to the economic downturn,” spokeswoman Julie Woo said.

Canadian labour force data suggests baby boomer retirements are already having an impact on the economy, though they are not expected to peak for another decade, said Claudine Vidallo, team lead at Enform’s labour market information division.

Still, retirements in the oilpatch have added another complication at a time of lower commodity prices. Enform estimates up to 23,000 oilpatch workers could retire by 2021, including 4,000 this year.

An Enform survey of 36 oil and gas companies in February found they are assessing whether they will fill positions vacated by retirements on a case-by-case basis.

Commodity prices are also expected to weigh on company decisions. If oil prices slide below US$50 a barrel and stay there, most vacancies caused by retirements this year would likely remain unfilled, according to Enform’s latest forecast.

Under a modest recovery scenario, where oil averages around US$55 per barrel before rising to US$75 in 2021, companies are expected to replace empty positions throughout the five-year forecast.