Suncor still searching for cost savings after wave of job cuts: CEO

globalnews.ca:

Suncor Energy Inc. says it has wrapped 1,500 job cuts two months ahead of schedule, but that it will continue to look for areas to trim as part of a wider efficiency push.

Chief executive Rich Kruger said on an earnings conference call Thursday that the cuts are expected to save $450 million a year, or about $50 million more than what they expected when the cuts were announced in June.

The extra savings came in part from additional reductions of contingent workers and contractors, while the overall cuts, combined with leadership and structural changes, put the company in a more competitive position, said Kruger.

“We are a simpler, more focused organization, positioned to compete and win.”

The company is also pushing ahead with plans for fewer, bigger trucks; buying and leasing a combined 55 ultra-class 400-ton trucks that will displace nearly twice as many smaller third-party vehicles, said Kruger.

The trucks will be driverless-ready as part of a wider push into the technology.

Suncor will be ramping up the number of trucks running autonomously at its Base Plant operation from 31 as of the second quarter this year to 91 by the end of next year.

“If our data is correct, this will be the largest single mine fleet of autonomous ultra class trucks globally,” said Kruger.

The company is not done finding efficiencies in its contractor base, but further improvements will be harder as much of the waste has already been taken out of the system, said Peter Zebedee, executive vice-president of oilsands.

“Now we’re looking at more sophisticated examples of integrated planning and scheduling, and maintenance, scheduling activity to drive further efficiencies. So do I think there’s more? Yes, absolutely. But this stuff is a bit more