Cenovus signals more job cuts ahead as it plans to cut spending further

CALGARY - Cenovus Energy Inc. (TSX:CVE) says it's planning to reduce its workforce further this year and take other moves to cut $400 million to $500 million from its costs while it rides out a rough period of low oil and gas prices.

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Among other things, it's aiming to cut operating and administrative costs by $200 million, through unspecified workforce cuts and lower cash compensation for its five highest-paid executives.

Its revised capital budget has also been lowered to between $1.2 billion and $1.3 billion, which is down $200 million to $300 million from the previous announcement. It's also 27 per cent less than 2015 and 59 per cent lower than 2014 levels.

The Calgary-based oilsands producer and refiner is also reducing its first quarter dividend by 69 per cent to five cents per share.

Cenovus didn't specify details about the workforce cuts in its announcement but said it's evaluating all its costs.

Cenovus CEO Brian Ferguson said the company ended 2015 in a stronger competitive position.


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