Imperial Oil to Sell Calgary Headquarters Amid Restructuring Efforts

Imperial Oil plans to sell its head office campus in Calgary, as part of its restructuring efforts to cut 900 jobs and shift most of its presence outside the city. The company had expected to occupy the complex for many decades but has been evaluating options for the campus due to a surplus of office space. Calgary already has the highest office vacancy rate in Canada at 20%.

Imperial Oil has announced a significant restructuring plan, including the sale of its head office campus in Calgary and a reduction of nearly 20% of its workforce by the end of 2027. The company, majority-owned by Exxon Mobil Corp., is facing challenges in the global crude market and aims to improve operational efficiency and cost savings.

The restructuring plan involves consolidating activities at operating sites and sharpening focus on production efficiency. Imperial Oil expects to cut around 900 jobs, with most of these positions located in Calgary. The company had approximately 5,100 employees at the end of 2024 Imperial Oil to cut 20% of workforce amid market pressures^[1]. The sale of the Calgary head office campus is part of a broader effort to reduce office space and align with the city's high vacancy rate of 20% Imperial Oil to cut 20% of workforce by end of 2027 in restructuring effort^[3].

Imperial Oil anticipates a one-time restructuring charge of about C$330 million ($237 million) before tax in the third quarter of 2025. The company projects annual expense savings of roughly C$150 million once the restructuring is complete by 2028 Imperial Oil to cut 20% of workforce amid market pressures^[1]. The restructuring is aimed at supporting the company's production targets for its Kearl oil sands mine and the Cold Lake site, and further reducing upstream costs Imperial Oil to cut 20% of workforce amid market pressures^[1].

The job cuts come as the industry faces pressure from falling crude prices. Brent, the global benchmark, has declined nearly 10% this year, and analysts warn of oversupply in the market. Cost efficiency has become a critical factor for producers looking to maintain investor confidence Imperial Oil to cut 20% of workforce amid market pressures^[1].

Alberta Premier Danielle Smith has expressed disappointment with the job cuts, stating that they reinforce the need to build more pipelines. She blames Ottawa for the layoffs at the Calgary-based company and believes that building pipelines could create more job opportunities Canadian energy minister, Alberta premier disappointed with Imperial Oil job cuts^[2]. Canada's Energy Minister Tim Hodgson also expressed disappointment with the cuts and is working to understand the company's decision and support the affected workers Canadian energy minister, Alberta premier disappointed with Imperial Oil job cuts^[2].

Despite the challenges, Imperial Oil's shares have risen about 35% over the past year, outperforming other major oil sands players. The restructuring signals the company's focus on long-term resilience as it adapts to changing commodity conditions and prepares for a leaner future Imperial Oil to cut 20% of workforce amid market pressures^[1].