Imperial Oil to cut 20% of workforce in restructuring, says guidance ‘unchanged’

Imperial (IMO) announced plans to further improve its performance by centralizing additional corporate and technical activities in global business and technology centers, realizing substantial efficiency and effectiveness benefits from scale, integration and technology. The restructuring is consistent with Imperial’s strategy to maximize value, using technology and leveraging the company’s relationship with ExxonMobil (XOM), the company said. Imperial corporate guidance for 2025 is unchanged and the company is well positioned to meet or beat its medium-term production and unit cost targets for Kearl and Cold Lake. Additionally, as a result of the restructuring, the company anticipates it will achieve a reduction in annual expenses of $150M by 2028. Larger benefits are expected over the longer-term as more fully leveraging the global scale and expertise of its major shareholder, ExxonMobil, will enable Imperial to further enhance cash flow growth by driving productivity improvements across its operations including higher production, reduced downtime, lower unit operating costs as well as project planning and execution excellence. The restructuring will use a rigorous transition process and is expected to reduce employee roles by approximately 20% by the end of 2027. As part of this change, Imperial will further consolidate activities to its operating sites, enhancing collaboration, operational focus and execution excellence. As a result of these changes, the company expects to record a one-time restructuring charge of approximately $330M before-tax in the third quarter of 2025. “We recognize the considerable impact this restructuring will have on our employees and their families. We are deeply committed to supporting our employees through this transition,” said Whelan.