Imperial Oil has agreed to sell its southeast Calgary headquarters to an unidentified buyer, Postmedia reported.

An Imperial Oil spokesperson told Postmedia that the company has reached a tentative agreement to sell that site, which contains five low-rise buildings that comprise about 800,000 square feet. Plans call for Imperial Oil to lease back some of the space, about 50% of which is already vacant, according to Postmedia.

The reported deal affects about 1,100 Imperial employees, who are facing job losses and relocations as part of the company’s massive restructuring plan aimed at consolidating corporate and technical activities into global business and technology centres. Imperial plans to reduce its workforce by 20% by 2027.

“We recognize the considerable impact this restructuring will have on our employees and their families,” said John Whelan, Imperial’s chairman, president and CEO. “We are deeply committed to supporting our employees through this transition.”

The changes are expected to cost Imperial $300 million before taxes in the third quarter of 2025. Lisa Schmidt, an Imperial spokeswoman, told Postmedia that the company will maintain its headquarters in Alberta but did not specify where.

The company’s exodus from Calgary, the heart of Canada’s oil and gas sector, marks a major blow for the city that has the most corporate head offices outside of Toronto. Most oilpatch investment decisions and are made in the city, which also houses numerous oil-and-gas operations centres like the one Imperial is reducing.

Imperial has maintained a large presence in the city for two decades after relocating from Toronto, impacting the commercial real estate sector and other businesses.

The company said the restructuring is designed to maximize value through technology integration and greater use of expertise available from its global parent ExxonMobil. Imperial expects to reduce annual expenses by $150 million by 2028, with additional long-term benefits anticipated from productivity improvements, higher production, reduced downtime and lower operating costs.

As part of the restructuring, Imperial plans to reduce employee roles by about 20% by the end of 2027. The company will also record a one-time, before-tax restructuring charge of about $330 million in the third quarter of 2025.

Imperial noted that corporate guidance for 2025 remains unchanged and that it is positioned to meet or exceed medium-term production and cost targets at its Kearl and Cold Lake operations in the Alberta oilsands. The company added that its focus on safety and operational reliability will continue throughout the transition.

In addition to operating oil-and-gas production facilities, Imperial owns the Esso fuel-station chain.

Pictured: Imperial Oil’s headquarters in Calgary.

Photo: Shutterstock