TransCanada Corporation (TSE:TRP, Mkt cap 30.22B, P/E 17.50, Div/yield 0.52/4.88, EPS 2.44, Shares 709.00M) has told its staff to expect layoffs as the pipeline builder looks to offset low oil prices and fulfil its growth plan, the Calgary Herald reports.
Employees were informed last week that “organizational changes” are to take place over the coming months, wrote company spokesman James Millar in an email, noting that the firm has already carried out a reduction of some senior leadership positions.
“This transformational change will allow us to reach the full potential set out in our ambitious growth plan, which includes $46 billion of commercially secured projects underway for completion by the end of the decade,” he explained.
Millar highlighted how the Calgary-based company had commenced restructuring in June as a means to remain competitive and deliver shareholder value as it strives to grow and build new projects.
He added that falling oil prices have had a “profound impact” on its customers, making it essential to drive down costs.
“We are now introducing significant changes that will make us a more nimble organization that will ensure each one of our three business units – natural gas pipelines, liquids pipelines and energy – are able to make the decisions necessary to maintain competitiveness and maximize shareholder value,” he wrote.
Millar said he doesn’t know exactly how many jobs will be cut but that the firm anticipates “about a 20% reduction in senior leadership positions.”
From there, another analysis of the business will take place and more employees will be affected.
He said the company, which currently has more than 6,000 staff in North America, is looking to complete the restructuring process by the end of November.
TransCanada Corporation is a Calgary based energy infrastructure company. TransCanada operates through 3 segments: Natural Gas Pipelines, Liquids Pipelines and Energy. Natural Gas Pipelines and Liquids Pipelines consist of natural gas and liquids pipelines in Canada, the United States and Mexico, plus regulated natural gas storage operations in the United States. The companies natural gas pipeline network transports natural gas to local distribution companies, power generation facilities and other businesses across Canada, the United States and Mexico. TransCanada’s existing liquids pipeline infrastructure connects Alberta and the United States crude oil supplies to the United States refining markets in Illinois, Oklahoma and Texas. The company’s network also connects United States crude oil supplies from the Cushing, Oklahoma hub to refining markets in the United States Gulf Coast. Transcanada’s energy business covers power operations and non-regulated natural gas storage business in Canada.
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