Job loss is looming for Calgary-based Suncor and Petro-Canada employees as the two energy giants approach a merger.
"We have reserves to last this new company more than one hundred years" said Suncor CEO Rick George.
The deal won't be finalized until the third quarter, but if approved by the federal government, the new Suncor will employ upwards of 12,500 people.
"When two companies headquarters merge, only one can come out at the end," said consultant and research analyst Michael J. Ervin.
"In the $3 billion in synergy, absolutely there are some job losses in that," said George, reiterating the rumours.
The companies have said their proposed merger will reduce annual operating costs by roughly $3 billion a year as they streamline business practices.
"We can share infrastructure pipelines power generation which you can do on a combined entity it's much more economic," said Petro-Canada CEO Ron Brenneman.
The two companies will continue to work as separate entities over the next four to six months until the approval process is complete.