Layoffs in the Oil Patch 3

[FireGilbert]

Originally Posted by Lubicon

Chevron laying off up to 35% of Canadian staff in early July. They are relatively small in Canada but it still sucks.

Chevron recently announced 10% layoffs internationally. Definitely sucky to see their Canadian operation at over 3x that rate.

[Mayo]

Originally Posted by Krovikan

Wow, 78% tax, compared to the 30-50% we tax our O&G companies, no wonder their fund is 1 trillion.

I mean the elephant in the room is that fact that Alberta has re-distributed enough money to rival that...I always find it odd that the Norwegians get so much credit for their wealth fund

[lucky1]

Originally Posted by FireGilbert

Chevron recently announced 10% layoffs internationally. Definitely sucky to see their Canadian operation at over 3x that rate.

Chevrons Canadian Business Unit (CBU) was basically staffing up in preparation for the Kitimat LNG project.... without kitimat, there really isn’t much left?

[toonmaster]

Originally Posted by 8sPOT

Suncor made the decision to layoff about 70 people, which is actually a small number across the whole organization. Could be more in the future though...

Can confirm. Two folks from my already small team were terminated yesterday.

[d00little]

Funcor laying off up to 15%

https://calgaryherald.com/business/l...box=1601657489

[Leondros]

The amount of vacant office space downtown is going to be absolutely mind blowing. No idea how anything in downtown is ever going to come back.

[Robbob]

Originally Posted by Leondros

The amount of vacant office space downtown is going to be absolutely mind blowing. No idea how anything in downtown is ever going to come back.

I think I heard it was close to 30%, which is crazy.

[Ozy_Flame]

This makes a bad situation worse. Those office spaces are going to need to be converted to Residential/Mixed-use if possible, as well as opening up to unorthodox uses for leasing space. At the current situation, there is just no other way. COVID also doesn't help given that towers can be cesspools for germs, and that work-from-home and remote work has essentially had a rocket strapped to its back this year.

Maybe they can gut one of the towers and set up a huge "Drop of Doom" amusement park ride?

[CaptainCrunch]

Originally Posted by Robbob

I think I heard it was close to 30%, which is crazy.

Yeah, there was an article the other day that its 30% vacant, and there's another expected big jump in that coming.


There are a lot of businesses that were hanging on, and are on the edge of failure, and since things like Revenue aren't coming back very quickly we'll see another collapse.


I know a lot of restaurants downtown that are closing up shop to.


I was downtown the other day, and even with people returning to the office from the work from home thing, it feels really empty.

[you&me]

Originally Posted by CaptainCrunch

Yeah, there was an article the other day that its 30% vacant, and there's another expected big jump in that coming.


There are a lot of businesses that were hanging on, and are on the edge of failure, and since things like Revenue aren't coming back very quickly we'll see another collapse.


I know a lot of restaurants downtown that are closing up shop to.


I was downtown the other day, and even with people returning to the office from the work from home thing, it feels really empty.

I thought I'd read another article recently, citing someone at Colliers (I think) that said there's an increase in DT space from suburban tenants that are finding opportunities in the current market that didn't exist before. As such, DT vacancy had actually dropped ~1.5% to around 25.0%.

In any event, DT is eerily quiet these days.

[CaptainCrunch]

There was an article this week that named 30%


https://www.cbc.ca/news/canada/calga...ancy-1.5745673

[Weitz]

Originally Posted by CaptainCrunch

Yeah, there was an article the other day that its 30% vacant, and there's another expected big jump in that coming.


There are a lot of businesses that were hanging on, and are on the edge of failure, and since things like Revenue aren't coming back very quickly we'll see another collapse.


I know a lot of restaurants downtown that are closing up shop to.


I was downtown the other day, and even with people returning to the office from the work from home thing, it feels really empty.

Downtown this week feels absolutely packed... compared to the last 6 months.. But pre-covid? Basically dead.

[Ahuch]

Originally Posted by Weitz

Downtown this week feels absolutely packed... compared to the last 6 months.. But pre-covid? Basically dead.

We're at 50%, but it also feels to me like there's less people going for coffee and lunches. Throw in all the companies that are starting to announce more rounds of layoffs and I think it's gonna get a lot uglier in the next bit...

[taffeyb]

Originally Posted by Ozy_Flame

This makes a bad situation worse. Those office spaces are going to need to be converted to Residential/Mixed-use if possible, as well as opening up to unorthodox uses for leasing space. At the current situation, there is just no other way. COVID also doesn't help given that towers can be cesspools for germs, and that work-from-home and remote work has essentially had a rocket strapped to its back this year.

Maybe they can gut one of the towers and set up a huge "Drop of Doom" amusement park ride?

Yep. Residential is not really that feasible either. It’s not like Calgary has a housing shortage. The sad part is more vacancy = less jobs = less people = less demand for housing


However, the Drop of Doom, I like that idea!

[KTrain]

Originally Posted by taffeyb

However, the Drop of Doom, I like that idea!

I'd prefer a Die Hard themed laser tag or paint ball course.

[Calgary14]

Cenovus buying Husky. I assume this will result in staffing reductions for both companies

https://ca.reuters.com/article/idCAKBN27A0DS

[Murph]

Originally Posted by Calgary14

Cenovus buying Husky. I assume this will result in staffing reductions for both companies

https://ca.reuters.com/article/idCAKBN27A0DS

More detail in the link below. It’s of particular interest to those of us on the East Coast. Husky operates one of the four offshore platforms, and Cenovus, a heavy oil company, has no other operating interest in the region.

http://www.globenewswire.com/news-re...gy-Leader.html

[Fusai]

Sounds like CVE wants to get into refineries and offshores.

[GGG]

Originally Posted by Calgary14

Cenovus buying Husky. I assume this will result in staffing reductions for both companies

https://ca.reuters.com/article/idCAKBN27A0DS

1.2 billion in efficiencies means 6000 jobs


The reason this works is it provides hedging for both companies. Husky was looking at MEG to prove feedstock into their refineries as a hedge against high prices and Cenovus now has refineries as a hedge against low prices.

[RichieRich]

Originally Posted by GGG

1.2 billion in efficiencies means 6000 jobs


The reason this works is it provides hedging for both companies. Husky was looking at MEG to prove feedstock into their refineries as a hedge against high prices and Cenovus now has refineries as a hedge against low prices.

Exactly... revenue diversification and protection. Essentially less reliance upon being only a producer. Likely opens other doors too. Nervous times for many employees - gotta wonder how much overlap there is?