The Globe and Mail reports in its Thursday edition that Enbridge plans cut about 1,000 positions, or 6 per cent of its workers, after buying Spectra Energy, the first layoffs for the combined energy infrastructure company. A Reuters dispatch to The Globe reports that the takeover announced last year, the most significant energy deal since oil and natural gas prices crashed in mid-2014, had highlighted how pipeline companies were under pressure to merge as they grappled with overcapacity and sliding tariffs that had slowed dividend growth and unnerved investors.
It is relatively common for layoffs to occur in mergers, and even without such deals oil and gas companies have been shedding staff in a bid to cut costs.
At the time, an expert said the deal had no serious antitrust problems as the companies' networks have limited overlap.
Duplications, however, exist in the combined company's "organizational structure," Enbridge spokesman Todd Nogier said.
"After a careful evaluation, Enbridge has taken the difficult but necessary step to address the overlap."
Mr. Nogier said the staff reductions are a component of the "synergies" expected over the coming months as it fully integrates the companies.
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