Enbridge to cut 1,000 jobs in Houston, Canada after Spectra merger

Canadian pipeline giant Enbridge is cutting 1,000 jobs, largely in Houston and Calgary, after completing its $28 billion acquisition of Houston’s Spectra Energy this year.

Enbridge CEO Al Monaco this month said Enbridge would leave its downtown Houston offices and consolidate in the former Spectra headquarters in the Galleria area.  He warned job cuts would come among corporate and administrative staffs that each company maintained before the merger.

“Whenever there is a combination of this magnitude, there’s going to be some duplication,” Monaco said in an interview this month. “We’re really focused on making sure we continue the growth momentum that we have, and that’s going to take people.”

The 1,000 jobs represent a 6 percent workforce reduction across the U.S. and Canada, Enbridge spokesman Michael Barnes said Wednesday. He declined to say how many jobs in Houston would be cut. But much of the overlap existed in Houston, so a few hundred local reductions could be possible.

RELATED: Merged Enbridge moving out of downtown Houston

“After a careful evaluation, Enbridge has taken the difficult but necessary step to address the overlap in the combined company’s organizational structure,” Barnes said in a prepared statement.

Barnes noted that other cost cutting measures will be implemented in the months ahead, but he didn’t elaborate on specifics.

When the deal closed in February, the merged company had almost 17,000 workers, including almost 1,750 in Houston.

Enbridge will leave its eight floors of prime downtown real estate in the 1100 Louisiana building, known as Enterprise Plaza, and move the more than 700 employees who work there to Spectra’s old headquarters on Westheimer Court by year-end.

RELATED: Enbridge completes acquisition of Houston’s Spectra Energy

Enbridge made the Spectra deal to enhance its gas pipeline position in the U.S. About 80 percent of Enbridge’s assets were in crude oil and other liquids before the Spectra deal. The merged company will have about an even split between oil and gas.

Enbridge gained a 90,000-mile network of gas and natural gas liquid pipelines from Spectra.

Enbridge’s three tax-advantaged partnership businesses all will remain headquartered in Houston with no plans for name changes or consolidation – Enbridge Energy Partners, Midcoast Energy Partners and Spectra Energy Partners. Former Spectra CEO Greg Ebel also remains with the company as chairman of the merged firm.

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