Canadian Natural Resources cuts staff salaries in Calgary, Aberdeen
CBC News | Posted: September 10, 2015 7:05 PM | Last Updated: September 11, 2015
Employees will see pay reduced by up to 10% as oil prices continue to slump
Canadian Natural Resources Limited said it is cutting salaries for all of its staff in Calgary and Aberdeen in Scotland as it grapples with low commodity prices.
- Penn West Petroleum, ConocoPhillips Canada slash hundreds of jobs
- Alberta has lost 35,000 oilpatch jobs, petroleum producers say
- 'Work-Sharing' helps retain staff in Alberta's economic downturn
Salaries will be reduced by up to 10 per cent, with the biggest cuts being absorbed by higher salaried employees, according to company spokeswoman Julie Woo.
AltaCorp energy analyst Nick Lupick says a decision by CNRL to cut salaries for staff makes sense on many levels. Investors will be reassured by the move and there are other advantages too, he said.
"It keeps morale high as well within in the company and that's something management teams are having to balance at this time as well," said Lupick, calling CNRL an already lean operation.
Its future is also brighter than some because of its Horizon oilsands project expansion, set to come on stream soon, is expected to boost the company's cash flow.
CNRL has not reduced its workforce this year, unlike many oil and gas producers who have resorted to mass layoffs in the face of plummeting oil prices.
"The additional measures taken today were in order to help the company address the current challenges without reducing our workforce," Woo said in an email.
CNRL has more than 7,600 employees across its operations in North America, Europe and Africa.