A construction site at the new Suncor Fort Hills tar sands mining operations near Fort McMurray, Alberta, September 17, 2014. In 1967 Suncor helped pioneer the commercial development of Canada's oil sands, one of the largest petroleum resource basins
IN PHOTO: A construction site at the new Suncor Fort Hills tar sands mining operations near Fort McMurray, Alberta, September 17, 2014. In 1967 Suncor helped pioneer the commercial development of Canada's oil sands, one of the largest petroleum resource basins in the world. Picture taken September 17, 2014. REUTERS/Todd Korol REUTERS/Todd Korol

Another Canadian energy company has fallen victim to the plunging global crude oil prices. Suncor Energy Inc., Canada's biggest energy company, has announced on Tuesday it will be laying off 1.000 jobs as it slashes some $1 billion from its spending budget earmarked for 2015.

Among those targeted for the job cuts are contract workers, presumably those involved at the expansions of MacKay River 2 and White Rose projects. The former had been scheduled to reach first production in 2017, but Suncor decided to delay it by at least a year.

Suncor added a number of employee positions will also be slashed. It will also implement a hiring freeze on "roles that are not critical to operations and safety." Suncor has about 14,000 people.

"Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices," Steve Williams, Suncor CEO, said in a statement. However, because of the continued fall of crude oil prices, the company has no choice but to accelerate its plans to restrict spending and lay off some jobs to keep the company afloat, he said. "We remain committed to spend within our means and maintain a strong balance sheet."

Prior to Tuesday's announcement, Suncor's original estimate released Nov 18 said it had expected its capital budget to be between $7.2-billion and $7.8-billion in 2015. That time, prices of crude oil was around $75 a barrel.

The $600-million to $800-million trim in operating expenses, the company said, will occur over the next two years. On Tuesday, prices of U.S. benchmark crude settled at $45.89 a barrel.

The company clarified construction of the $13.5-billion Fort Hills mine north of Fort McMurray, Alta., and the Hebron field in offshore Newfoundland will proceed. Both are expected to go online in 2017. Despite the cuts in budget spending at number of workforce, Suncor maintained its production guidance for 2015, which is between 540,000 barrels to 585,000 barrels of oil a day this year.

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