800 workers take voluntary buyouts at Canadian pipeline giant Enbridge

Hundreds of workers at Canadian pipeline giant Enbridge haved opted for a voluntary buyout program as the company navigates thefallout of the COVID-19 pandemic and an unprecedented oil demand shock.

The Calgary-based company says about 800 employees roughly seven per cent of its workforce will be taking the buyouts thatEnbridgeintroduced inMay.

Enbridge said the buyoutsare spread outacross the company, which employed approximately11,500 workers in both Canada and the United States prior to the announced departures.

Marc Weil, senior vice president and chief human resources officer, said Enbridgewanted to give its employees a choice and avoidlayoffs as it aimed to reduceoperating costs.

In an interview, Weil said the voluntary program hadbeen successful in meeting its objective.

"We have told our employees that we don't expect that we will be going forward with any enterprise-wide layoffs at this point in time," Weiltold CBC News on Wednesday.

Last month, Enbridge reported a first-quarter loss of nearly $1.43 billion as it was hit by one-time non-cash charges in the quarter including a writedown of its investment in DCP Midstream, a joint venture in the United States.

At the time, CEO Al Monaco saidthe company plannedto reduce its 2020 operating costs by about $300 million and will defer about $1 billion of 2020 secured growth capital spending due to the pandemic.

Weil said the company is confident that it will reach itsplanned overall operating cost reduction, adding thevolunteer program represents a "good portion" of the$300-million goal.

The company has also offered employees educational leaves of up to two years and part-time work options.

Departures will start soon

Weil said all staff who successfully applied for a buyout have been notified and the majority would be leaving the company within the next three weeks.

A smaller number ofdepartures are being staggered through the summer and into fall in areas where business continuity is critical for knowledge transition, Weil said.

A significant portion of those taking the buyout were those eligible for early retirement, he said.

Enbridgeis planning to recognize the work and careers of departing staff, he added, though the pandemic means the company won't beholding the usualgatherings.

North America's oil and gas sector has beenhammeredby the pandemic's economic impact, withdemand for fuel plunging as an international price war also floodedthe market with cheap crude.

The situation has spurred oil and gas companies to slash both production and capital spending. It also led to job losses across North America, with Rystad Energy pegging the U.S. tally at over 100,000.