Enbridge Inc, Canada’s largest pipeline operator, said on Wednesday about 800 employees have opted for voluntary buyouts, as the company tries to reduce costs to tackle the COVID-19 crisis and the global oil price shock, as reported by Reuters.
In an email response to Reuters, Calgary-based Enbridge said it was offering employees the option to voluntarily select early retirement, severance, leaves of absence or part-time work.
“As a result of these actions, we won’t need to pursue company-wide layoffs at this time,” a company spokesperson said.
Enbridge is reducing base pay across its non-union workforce, with the board of directors and CEO Al Monaco taking a 15% cut and the company’s executive vice presidents taking a 10% cut.
A recent plunge in global crude prices due to a pandemic-driven drop in demand and excess supply has battered Canada, the world’s fourth-largest crude producer.
Last month, Enbridge said it has deferred C$1 billion ($737.57 million) in capital spending and cut costs by C$300 million, including salary cuts and retirements.
(This story corrects paragraph 4 to clarify that the pay-cut range of 10% to 15% is for Enbridge’s directors, CEO and EVPs, and not across the non-union workforce)
Reporting by Shradha Singh in Bengaluru; Editing by Maju Samuel and Devika Syamnath
