Calgary-based Enbridge Inc. said Wednesday it would take “the difficult but necessary step” to eliminate 1,000 jobs company-wide in order to reduce the duplicative positions that emerged after it acquired Houston-based Spectra Energy Corp.
The stock-for-stock merger closed in February, and Enbridge said that after a “careful evaluation” the company decided on the job cuts to “address the overlap in the combined company’s organizational structure.”
The job cuts — which were being made Wednesday and Thursday — represent about 6% of the company’s workforce. Positions would be eliminated in both the United States and Canada.
“These workforce reductions are only one component of the synergies we expect to achieve over the coming months as we fully integrate our companies,” Enbridge said.
The combination brought together liquids-heavy Enbridge with mostly natural gas-focused Spectra to create the largest energy infrastructure company in North America with an enterprise value of roughly $127 billion.
In recent years, Enbridge has focused on finding opportunities to expand and diversify its asset base. Last year, the company launched a program aimed at improving its competitiveness in the energy industry and geared toward future growth. Wednesday’s announcement comes after the company’s move in October to reduce its workforce by 5% as part of its growth strategy.
Enbridge said Wednesday it is providing support to the laid-off employees, but it didn’t offer any other details.