CALGARY—TransAlta Corp. is making further cuts in order to improve its position and combat economic and regulatory uncertainty.
The company will eliminate 239 positions, primarily at its corporate head office in Calgary. The jobs cuts are expected to result in costs savings of approximately $25 million.
The cuts follow a 247 employee reduction earlier this year at TransAlta’s Canadian coal and mining business unit. The company said it expected savings from that reduction to amount to approximately $22 million, bringing the total for the year to about $47 million.
These changes are part of a decision to streamline operations, decentralize decision-making and reduce management to meet TransAlta’s goal of being “the lowest-cost producer in the Alberta so that we can be profitable in any market conditions,” Donald Tremblay, the company’s CFO, said.
“These are important steps in the context of a very competitive Alberta market and they will ensure sustainable cost reductions into the future,” Tremblay added.
The company noted ongoing economic and regulatory uncertainty has made it necessary for TransAlta to reduce its workforce to control costs and manage the impact of Alberta’s economy on demand for electricity. “We have responded to these challenges by sharpening our focus on providing the most competitive pricing for our customers,” Tremblay said.