Enbridge sheds 1,000 jobs after takeover of Spectra Energy

Enbridge Inc. said Wednesday it is cutting about 1,000 jobs, or sixper cent of its staff, following the completion of its takeover ofSpectra Energy Corp of Houston, Texas.

In a statement to CBC News, Enbridgesaid the cuts are taking place across the combined company, which had a workforce of roughly 17,000 prior to the announcement of the job cuts.

"After a careful evaluation, Enbridge has taken the difficult but necessary step to address the overlap in the combined company's organizational structure," Enbridgespokesperson Todd Nogiersaid in a release.

"These workforce reductions are only one component of the synergies we expect to achieve over the coming months as we fully integrate our companies," Nogier said.

A source familiar with the story said half of the cuts are vacancies and the majority of employee layoffs are taking place in Houston, where Spectra Energy was headquartered.

Shares of Enbridgegained 1.8 per cent onthe TSX, rising 98cents to close at$55.10.

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The Enbridge takeover of Spectra was unveiled in September 2016. At the time, the all-stock deal was valued at $37 billion. Enbridgesaid then that it expected to achieve about $540 million in annualized operational savings, most of it to be achieved in the latter part of 2018.

Enbridge said in late February, just days prior to the completion of the takeover, that the merged company would be thelargest energy infrastructure company in North America. Spectra owned natural gas and oil pipelines and storage facilities in both Canada and the United States.

The merged firm's head office is based in Calgary, while its gas pipeline business is based in Houston, and its liquids pipelines business is based in Edmonton.

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