Pipeline firm TransCanada said Thursday it plans to cut about twenty percent of its senior leadership positions this year and will evaluate the need for further staff cuts.
According to the Globe and Mail, the company will axe about one-fifth of its vice-president and senior vice-president positions, most likely through a combination of layoffs and retirements.
A member of the company’s executive leadership team, executive vice-president for operations and engineering Jim Baggs, will also retire.
Further details about the layoffs have not been disclosed.
TransCanada will evaluate the need for layoffs among rank-and-file employees after the round of senior staff cuts, the Globe and Mail added.
The headcount reduction process is expected to be complete by November and follows 185 job cuts at the company’s major projects division in June.
TransCanada employees about 6,000 people, with about 4,000 employees in Canada.
“Falling oil prices and the current environment are having a profound impact on our customers and we must do all we can to drive down costs and pursue our projects more efficiently and strategically,” TransCanada spokesman James Millar told the Global News.
In April, TransCanada delayed the startup of its Energy East pipeline by about two years after scrapping a marine terminal plan that would have impacted a beluga whale habitat, the Financial Post said.
The pipeline is now expected to go onstream in 2020.
The company is also still waiting for its Keystone XL pipeline to win regulatory approval after President Obama vetoed a bill that would greenlight the project in February.
The 830,000 barrel per day pipeline would stretch 1,179-mile from Hardisty, Alberta to Steele City, Nebraska located just north of the Cushing oil hub.
Millar told the Globe and Mail that the cuts are not related to any single project.
TransCanada expects to complete $46 billion in commercial secured projects by the end of this decade, the Global News added.