CALGARY – Cenovus reported a $28 million operating loss Thursday and said it plans to save $400 million with job cuts later this year, in addition to the 800 it made in February.
Cenovus said it expected to end the year with about 4,000 employees, including contractors, down about a quarter from a year earlier. The company estimated that these reductions would generate savings of at least $100 million annually from next year.
Earlier this year, Cenovus said it would cut 300 to 400 jobs in the second half of 2015. On Thursday morning, it revised that number upwards, to 700.
Job cuts will result in additional severance costs of about $32 million in the current quarter, the company said. Cenovus, which previously announced additional staff reductions in 2016, said it would achieve additional savings by changing some compensation, benefits and time-off practices.
the company has cut capital spending in recent months, reported a third-quarter operating loss of $28 million, or 3 cents per share.
More to come as the story progresses