Layoffs expected to save $450 million or $1.50 US per barrel.
Target is $5.00 US per barrel.
Freddie stated the company will now focus on the “corporate side” as it attempts to reduce break even price.
So in other words … layoffs will continue in 2024.
There is a rumour that Freddy will not make the year.
Check out Suncor stock over the past month. Down 4.7%.
Another great suggestion is to maximize the volume of BS&W in our synthetic crude as well as water content in the gasoline / diesel we sell up to the limit. Selling water for gasoline is money in the bank. Product quality be damned.
Thank you for your suggestions SMH. I will pass these along to our pipeline group for implementation.
Yes, save on that corrosion inhibitors ... While at it why not stop inspections and tools run programs to save maintenance costs, heck while at it don't bother replacing the anodes and turn off those rectifiers to save electricity!!! Then have the lines corroded and leaking oils all over the place. Then we'll have the environmental damages, fines, more clean up , repair and other charges. What a genius suggestion! People like you need to get laid off ... Or better fired!
Suncor should consider reducing the money they spend on corrosion mitigation at the facilities and pipelines. BP reduced the money spent on corrosion inhibitor in Alaska back in the 1990s saving the company big bucks. We can find that extra $3.50/barrel people !!
Suncor makes so much money every quarter compared to other companies. Why in the world there need to be more layoffs?
Peeling back $5.00 total cost is going to be challenging and perhaps unsustainable. It would have been better to use the full organization to leverage and identify places to cut costs first, and then lay people off last. Here are some very bad ideas for cuts but looks like they might be implemented but at what long term cost? Cut emission reduction projects, carbon capture and plans, cut winterization, cut preventative maintenance. cut capital projects, cut contractors. The car only drives without oil so far until it breaks down. The question is where is the breaking point, and what will be the extent of the damage, could it be harm to a human or harm to the property or harm to the environment. How bad will the failure be for all that has been sacrificed? Winterization is almost invisible in its benefit when it’s done properly, but it can cause catastrophic failures if it’s not done well. This plan looks like a short 1-3 year cash squeeze for Suncor stock, but eventually costs are likely going to have to come back up after this current CEO is finished. There could be some catastrophes brewing up but the current CEO can just wash his hands when he’s done: This doesn’t seem sustainable. Short term gain for longer term pain.
Suncor will continue to look for areas to trim as part of a wider efficiency push.
I don't think you actually listened to the call...this was not what was implied at all.
Suncor should push for the outsourcing strategy of HR, Finance, Marketing, and Supply Chain as long as these departments will still be managed by Suncor directors. Outsourcing has less labour cost and they can hire more qualified/ competitive/ competent staff. Only keep IT (for systems control) and Operations (to monitor safety and quality).
In other words making the maintenance budget even tighter, as though wishing can make the equipment run longer. After all it is just a matter of adjusting the schedule in SAP right?
So glad I retired.
Target of $5 is not going to be from layoffs but more effective methods on saving costs in ops and support services. More tight budget etc.