Unveiling the Elephant in the Room: Suncor’s Layoff Announcement After Alberta Election Raises Eyebrows

Suncor, one of the largest employers in Alberta’s energy sector, has Albertans feeling blindsided with news of a significant layoff imminent right after the provincial election. The announcement’s timing fuels Albertans’ speculation that Suncor deliberately withheld the news to avoid becoming a contentious issue during the campaign.

The coincidence of Suncor’s layoff announcement immediately after the Alberta election raises questions about the timing and motives behind the decision. If Suncor had revealed the impending layoffs before the election, it could have influenced voters and affected the outcome. Consequently, it could have posed a further uphill battle for the already controversial UCP leader Danielle Smith and her path to getting re-elected. And had Notley, the New Democratic Party (NDP) leader, won the election, her party would have faced an almost certain backlash for costing Albertans 1.500 jobs after being elected as its new premier.

Suncor’s new CEO, Rich Kruger, communicated the layoff decision to the company’s staff via email Thursday, citing the need to eliminate 1,500 positions by the end of the year to save $400 million. This announcement came on the heels of Suncor reporting record fourth-quarter profits in 2022, amounting to nearly $2.74 billion, almost doubling the previous year’s figures.

“Staffing reductions will occur at all levels of the organization and will be based on both performance and business need. As we do this, we will eliminate work, critically looking at what we do, why we do it, how we do it and the value it adds,” CEO Rich Kruger, Email to staff

However, the first quarter of 2023 saw a decline in Suncor’s profits, with estimated earnings amounting to a meagre $2.05 billion. This raises the question of why Suncor would choose to implement layoffs despite its relatively strong financial performance. The company has not provided a detailed explanation beyond cost-saving measures.

Given Premier Danielle Smith’s close ties to the oil and gas industry and her prioritization of the sector’s interests, it is difficult to believe that she was unaware of Suncor’s impending layoffs. If they did and she kept the news silent, she knowingly put Albertans in an unfavourable position of not having ample time to get their finances in order and put her political future ahead of Albertans. And if “she was not in the know,” the excuse she uses, what does that say about her leadership and relationship with the top brass of Suncor? The allegations by Albertans that Suncor alerted Smith about the layoff plans before the election gains credence, considering the company’s stature and the significance of its decision. It is highly unlikely that a major corporation like Suncor would substantially reduce the workforce without notifying the premier’s office or the minister of labour.

Furthermore, Scotiabank analyst Jason Bouvier’s statement that Suncor’s leadership change would provide an “actionable event” for those seeking change indicates that the possibility of layoffs was not entirely hidden. Kruger’s appointment as CEO in February 2023 should have signalled to Albertans that significant changes were on the horizon.

Sneh Seetal – Director of Corporate Communications, was coy with her response when pressed by the media as to what specific sectors will see the bulk of layoffs, indicating they will not be solely limited to office workers. Her response further adds to legitimate concerns of potential safety with a reduced workforce.

It is important to note Kruger has a reputation as a safety champion, but the concerns about whether the layoffs might compromise safety standards within Suncor are still valid. Since 2014, there have been 12 fatalities in the Alberta Oil Sands in work being done or connected to Suncor. The reduction of 1,500 positions could potentially strain the workforce and lead to increased workloads for remaining employees, which might affect overall safety practices. And despite all the safety measures the company has in place, its record on fatalities can not be disputed.

In retrospect, it becomes apparent that Kruger had been subtly hinting at the company’s plans during his tenure. By revisiting news articles and statements from Kruger, it becomes clear that the breadcrumbs were there, but they went unnoticed amid the election fervour and Premier Smith’s political antics.

The news of Suncor’s layoffs right after the Alberta election has shocked many Albertans. The timing of the announcement, combined with Suncor’s record profits in the previous year, has fueled speculation about the company’s motives and its allegedly calculated decision to delay the announcement until after the election. Premier Danielle Smith’s close ties to the industry and her focus on the oil sector raise legitimate questions about her knowledge of the impending layoffs. This situation reminds us that political agendas often intertwine with corporate decisions, blinding affected citizens and questioning their leaders’ actions.