Alberta Sees More Layoffs, Wage Cuts Due to Low Oil Prices
Another fossil fuel company in Alberta, Calgary-based PHX Energy Services, is laying off nearly half of its work force in response to low oil prices.
The move affects more than 500 employees, most of them based in the province.
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“Due to the current market challenges and uncertainty with respect to future oil commodity prices and drilling activity, PHX Energy has significantly reduced its cost structure to align with anticipated lower activity levels,” the company said in a release.
PHX had tried to weather the price crash by cutting salaries by up to 20% earlier this year. Earlier last week, tar sands/oil sands producer Canadian Natural Resources announced a 10% wage cut after posting a second-quarter loss of $405 million.
Earlier in the month, Alberta Finance Minister Joe Ceci announced that his first budget next month will include a job creation strategy for the beleaguered province.