By The Associated Press
Thursday, September 3, 2009
Canadian oil and gas producer Suncor Energy Inc. said Thursday it expects to cut 1,000 jobs by mid-October after completing its merger with Petro-Canada.
The company also said the merger, which created Canada's largest energy producer, would meet or beat cost savings targets set before the deal. In March, the companies estimated that their combination would cut operating costs by $300 million and capital spending by $1 billion.
"Unfortunately, bringing two large businesses together has also meant that some of the efficiencies are necessarily through work force reductions," said Suncor CEO Rick George, in a statement.
Suncor said jobs would be eliminated through layoffs, retirements and cutting contract positions. It said the majority of layoffs have already occurred.
Also, Suncor said it plans to shift management of its international and offshore business to Calgary, Alberta, from London.
The merger closed Aug. 1. Suncor said it has been reviewing projects to pick the best opportunities and timing for development.
Suncor's U.S.-traded shares gained 17 cents to close at $30.07 on Thursday.
