Imperial Oil Layoffs: Your Rights and Severance Pay Explained

What’s Happening at Imperial Oil?

Imperial Oil, one of Canada’s largest integrated oil producers, announced plans to cut about 20% of its workforce by the end of 2027 (Financial Post).

The restructuring comes amid a global crude price slump and aims to save $150 million annually by 2028, according to Reuters. The company, majority owned by Exxon Mobil, currently employs more than 5,000 workers across Canada.

Key details:

• 20% workforce reduction (approximately 900 jobs)
• C$330 million restructuring charge in Q3 2025
• Consolidation of corporate functions into “global business and technology centres”
• Relocation of most Calgary head office roles to Strathcona refinery near Edmonton by 2028
• Only a small Calgary presence will remain going forward

Impact on Calgary Employees

The biggest effect will be felt in Calgary, where Imperial moved its head office from Toronto in 2004. While the company will keep a limited footprint, most Calgary positions will be eliminated or relocated. This has raised concerns from government officials and industry watchers about the city’s broader role in the oil and gas sector. Read our resource on your rights if your employer forces you to relocate.

An Imperial Oil spokesperson, Lisa Schmidt, acknowledged to CBC News “the considerable impact this restructuring will have on our employees and their families,” adding that Imperial is “committed to supporting our employees through this transition.”

Why Is Imperial Oil Cutting Jobs?

Unlike previous oilpatch layoffs tied to low oil prices, Imperial’s cuts are focused on reducing costs and leveraging technology:

• Automation and technology are reshaping how work is done
• Imperial aims to stay competitive long-term, despite remaining profitable today
• The move aligns with other energy majors like ConocoPhillips and Cenovus, which also announced workforce reductions in 2025.

In its media release, Imperial said it expects to realize “substantial efficiency and effectiveness benefits” by consolidating activities at its operating sites to improve “collaboration, operational focus and execution excellence.”

Imperial Oil’s Other Workforce Changes

This isn’t the first time Imperial has reduced staff:

In 2023, Imperial scaled back its contractor workforce at the Kearl oil sands site in northern Alberta to cut costs, though full-time employees were not laid off (Energy Now).

Imperial Oil Severance Pay – What Employees Should Know

If you’re a non-unionized Imperial Oil employee in Canada, you may be entitled to up to 24 months’ pay as severance in Canada when you are let go.

How Severance is Calculated

Several factors determine what you’re owed, including:

• Age
• Length of service
• Position or seniority
• Ability to find similar work (job market conditions)

What a Fair Package Should Include

A proper and fair severance package at Imperial Oil must cover:

• Salary
• Bonuses & commissions
• Benefits & pension contributions
• RSUs, stock options, incentive pay
• Vacation pay & allowances

Not Always Called a Layoff

Sometimes Imperial Oil (and other large employers) avoid calling it a layoff by cutting pay, reducing responsibilities, or reassigning employees. In Canada, these changes may qualify as constructive dismissal — which is legally treated the same as a termination and may entitle you to full severance pay.

Severance Success Stories – Our Track Record

We’ve negotiated significant results for employees at major corporations, including:

• ✅ 24 months’ severance for a long-term professional after refusing unfair new terms post-acquisition. See our win →
• ✅ 6 months’ severance for a short-term executive pressured to sign an unfair release after termination. See our win →
• ✅ 4 months’ severance for an employee terminated after just eight months in a senior role. See our win →

Our clients are often surprised by how much they’re legally owed after being wrongfully dismissed — and legal fees are often covered by the employer.

FAQs on Imperial Oil Layoffs

Speak to an Employment Lawyer About Imperial Oil Layoffs

If you’ve been impacted by Imperial Oil layoffs in Calgary and across Canada, don’t sign anything before seeking legal advice.

At Samfiru Tumarkin LLP, we:

• 👥 Represented 50,000+ Canadians
• 💰 Secured millions in severance payouts
• ⚖️ Settle over 99% of cases out of court
• ⭐ Earned 3,000+ 5-star Google reviews
• 🏆 Named one of Canada’s Best Law Firms

📞 Call us at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer.